2014 (2) TMI 152 - AT - Customs

Classification of goods - import of coated paper - Classification under CTH 4707.90 or under CTH 48 - Denial of refund claim - Lower appellate authority has allowed the full refund - Held that - Though the lower appellate authority did not specifically allow the appeal of the respondents regarding their claim that the impugned paper was only waste paper chargeable to lower rate of duty under CTH 4707.90 and not under CTH 48, while allowing the appeal on the valuation issue he had specifically stated that the original authority had not categorically held the impugned paper to be serviceable paper. - earlier order of the lower appellate authority has attained finality in the absence of any appeal against it - Decided against Revenue.

Summary

Issues:
Classification of imported goods as waste paper or coated paper; Refund claim based on lower appellate authority's order; Department's appeal regarding refund amount restriction.

Classification Issue:
The lower appellate authority initially approved the value of imported goods as waste paper under CTH 4707.90, setting aside the Order-in-Original. The Department issued a show-cause notice to restrict the refund amount, claiming the goods should be classified as coated paper under a higher duty rate. The lower appellate authority, while not explicitly addressing the classification issue, had indicated in an earlier order that the impugned goods were considered paper waste. The Tribunal noted that the Department did not appeal the earlier order, which had allowed the appeal in its entirety. As a result, the Tribunal found that the lower appellate authority's decision on classification had attained finality, dismissing the Department's appeal.

Refund Claim Issue:
The respondents filed a refund claim based on the belief that their appeal had been fully allowed by the lower appellate authority. The Department, however, issued a show-cause notice to restrict the refund amount, contending that relief on the classification issue had not been specifically granted. Despite accepting the lower appellate authority's earlier order, the Department later sought to limit the refund. The Tribunal observed that the lower appellate authority had set aside the original order entirely, indicating that the full refund was admissible. Consequently, the Tribunal found no merit in the Department's appeal on the refund claim issue and dismissed it.

Conclusion:
The Tribunal upheld the lower appellate authority's decision on the classification issue, emphasizing that the Department's failure to appeal the earlier order meant it had attained finality. Additionally, the Tribunal rejected the Department's appeal concerning the refund claim, as the lower appellate authority had allowed the appeal in its entirety, entitling the respondents to a full refund. The Tribunal dismissed the Department's appeal, affirming the lower appellate authority's decision.