2013 (12) TMI 521 - AT - Customs

Classification of goods - Classification under CTH 7606 or CTH 7610 - Import of aluminum composite panels - Held that - panels under import are processed and prepared material meant for use in structures and not mere aluminum plates, sheets or strip. Though normally use of a material by itself is not a determinant for classifying a product, CTH 7610 particularly refers to materials processed for use in structures . Hence, the impugned goods which are prepared and used for cladding in structures, prima facie appear to be classifiable under CTH 7610 - Following decision of Rana Enterprises v. Commissioner of Customs, Mumbai 2011 (2) TMI 549 - CESTAT, MUMBAI - Stay granted.

Summary

Issues: Classification of imported goods under CTH 7606 or CTH 7610; Concessional rate of duty under Notification No. 21/2002; Stay petition by the Department.

In this case, the main issue revolves around the classification of the imported goods, described as aluminum composite panels, under the Customs Tariff Heading (CTH) 7606 or CTH 7610. The original authority classified the goods under CTH 7610, while the lower appellate authority classified them under CTH 7606, resulting in an appeal by the Department. CTH 7606 pertains to aluminum plates, sheets, and strip exceeding 0.2 mm in thickness, whereas CTH 7610 includes aluminum structures and parts prepared for use in structures. The aluminum composite panels in question, known as Alpolic, consist of metal skins, a core, and surface finish, indicating they are processed materials for use in structures rather than simple aluminum plates or sheets. The Tribunal noted that CTH 7610 specifically refers to materials "processed for use in structures," suggesting that the impugned goods are appropriately classifiable under CTH 7610. Reference was made to a previous case where similar goods were classified under CTH 7610, further supporting this classification.

Regarding the concessional rate of duty under Notification No. 21/2002, the Tribunal's analysis primarily focused on the classification of the goods under the relevant Customs Tariff Heading. The decision to classify the goods under CTH 7610 influenced the determination of the concessional rate of duty applicable to the imported aluminum composite panels.

Lastly, the Department filed a stay petition seeking to suspend the operation of the lower appellate authority's order during the pendency of the appeal. Based on the findings that the impugned goods prima facie merit classification under CTH 7610, the Tribunal concluded that the balance of convenience favored granting the stay petition. Consequently, the Tribunal ordered to stay the operation of the lower appellate authority's order until the appeal process is completed, emphasizing the classification under CTH 7610 as the basis for this decision.