2014 (7) TMI 102 - AT - Customs

Import of flower seeds through courier - revenue contended that plants and parts thereof cannot be imported through courier as per the Regulations. - Contravention of provisions of Courier Import & Export (Clearance) Regulations, 1998 - Held that - Seeds of kind used for sowing are classifiable under Chapter 12 of the Tariff whereas trees, plants, bulbs and roots are classifiable under Chapter 6 of the Tariff. Even the Tariff recognizes seeds for sowing and plants and parts thereof differently. In the present case, the seeds are for sowing i.e. for seasonal flowers. In these circumstances, there cannot be any redemption file and penalty - Decided against Revenue.

Summary

Issues: Classification of flower seeds under Customs Tariff Act, 1975

Analysis:

Issue 1: Classification of flower seeds under Customs Tariff Act, 1975

The Appellate Tribunal CESTAT MUMBAI heard an appeal filed by the Revenue against an order-in-appeal passed by the Commissioner (Appeals) regarding the import of flower seeds through courier. The adjudicating authority had held that the seeds, being parts of plants, were imported in contravention of the regulations and were liable for confiscation. However, the Commissioner (Appeals) overturned this decision, stating that the seeds were not plant parts. The Revenue contended that seeds are parts of plants as per the Concise Oxford Dictionary. The Tribunal analyzed the classification of seeds under the Tariff, noting that seeds for sowing are classified under Chapter 12, while trees, plants, bulbs, and roots are classified under Chapter 6. Recognizing the distinction between seeds for sowing and plants, the Tribunal found no fault in the Commissioner (Appeals)' decision. Consequently, the Tribunal dismissed the appeal, upholding the order-in-appeal.

In conclusion, the Tribunal's judgment clarified the classification of flower seeds under the Customs Tariff Act, 1975, emphasizing the distinction between seeds for sowing and plants. The decision highlighted the specific classification of seeds under Chapter 12 of the Tariff, supporting the Commissioner (Appeals)' ruling that the imported flower seeds were not parts of plants. The judgment serves as a significant interpretation of the relevant regulations and tariff provisions, providing clarity on the classification of goods for future import disputes.