2014 (2) TMI 359 - AT - Customs

Classification of goods - Denial of the concessional rate of CVD under Notification No.4/2006-CE dated 01.03.06 - Imposition of penalty - Held that - Notification No.12/2012-CE dated 17th March, 2012 clearly clarified that the polished marble slabs and tiles are classifiable under C.T.H. No. 68022190 would eligible for the benefit of exemption under the said notification - applicant paid duty at the Bombay customs under protest. We find that the applicant made out a prima facie case for waiver of pre-deposit of entire dues. Accordingly, pre-deposit of entire duty along with interest and penalty is waived and its recovery stayed till the disposal of the appeals - Stay granted.

Summary

Issues: Classification of imported marble slabs under Customs Tariff Heading, applicability of concessional rate of CVD, imposition of duty, interest, and penalty, clarification on exemption entry, intention to evade payment of duty, waiver of pre-deposit of dues.

In this judgment by the Appellate Tribunal CESTAT CHENNAI, the issue revolved around the classification and duty applicability concerning imported "Polished (Honed) Marble Slabs." The applicants imported the slabs and classified them under Customs Tariff Heading No. 68022110 under a concessional rate of CVD. However, a show cause notice was issued proposing a demand of duty, interest, and penalty, alleging misclassification under C.T.H. No. 68022190 and denying the concessional rate of CVD under Notification No. 4/2006-CE. The adjudicating authority confirmed the duty demand and imposed penalties on the applicants.

Upon hearing both sides, it was noted that the Ministry's clarification dated 16.03.12 specified that polished marble slabs under C.T.H. No. 68022190 were eligible for the benefit of exemption under Notification No. 4/2006-CE. The applicants contended that they correctly cleared the slabs at Chennai Customs under C.T.H. No. 68022110, while at Mumbai Customs, the goods were classified under C.T.H. No. 68022190, leading to duty payment under protest. The tribunal observed that the Commissioner's finding of suppression based on the payment under protest lacked examination of the records.

The LD AR argued that the exemption under Notification No. 4/2006-CE applied to marble slabs under C.T.H. No. 25151220, not to polished slabs under C.T.H. No. 68022190. He claimed that the applicants' differing classifications at different customs locations indicated an intent to evade duty payment. However, the tribunal found the Ministry's clarification crucial, stating that polished marble slabs under C.T.H. No. 68022190 were indeed eligible for the exemption under the notification.

Considering the submissions, the tribunal acknowledged that the applicants paid duty under protest at Bombay customs. Consequently, a prima facie case for the waiver of pre-deposit of entire dues was established. Thus, the pre-deposit of the duty, interest, and penalty was waived, and the recovery stayed pending the appeal's disposal. Ultimately, the stay petitions were allowed, and the order was dictated and pronounced in the open court.