2015 (3) TMI 198 - AT - Customs

Waiver of pre deposit - Benefit of Exemption Notification No.21/2002-Cus., dated 01.03.2002 - Classification of goods - Classification under CTH 90229090 or CTH 370110 - Held that - there is dispute in the facts of the classification of the goods. Prima facie , we find that these goods are used as X-ray plates as evident from the literature of the CDM 4.0 General Plate and General Cassettee. On a query from the Bench, the learned Authorised Representative submits that the supplier also classified the imported goods under Chapter 37 of the CETA, 1985. In view of that the applicant failed to make a out a strong prima facie case for waiver of the entire amount of duty along with interest. Accordingly, we direct the applicant to pre-deposit a sum of ₹ 4,00,000 within a period of six weeks. Upon deposit of the said amount balance amount of duty along with interest would be waived till disposal of the appeal. - Partial stay granted.

Summary

Issues: Classification of imported goods under CTH 90229090 or CTH 370110 and eligibility for duty exemption under Exemption Notification No.21/2002-Cus

The judgment revolves around the classification of the imported CRMD 4.1 cassette and plate, with the applicant claiming it falls under CTH 90229090 for exemption under Notification No.21/2002-Cus, while the department argues it should be classified under CTH 370110, leading to a duty demand of Rs. 8,36,134 along with interest. The Tribunal delves into the definitions of CTH Heading No.3701 covering photographic plates and film and CTH Heading No.9022 encompassing apparatus based on the use of X-rays. The applicant asserts that the imported goods serve as an accessory to X-ray machines falling under sub-heading 90229090, highlighting technological advancements and the relevance of Chapter 90 notes on parts and accessories. Conversely, the department contends that the goods function as X-ray plates in the machines, enabling multiple copies compared to traditional single-use plates. The Tribunal notes the factual dispute regarding the classification, observing the goods' utility as X-ray plates based on product literature. Additionally, the supplier classified the goods under Chapter 37 of the CETA, 1985, further complicating the classification scenario. Consequently, the Tribunal directs the applicant to pre-deposit Rs. 4,00,000 within six weeks, indicating a lack of a strong prima facie case for a complete duty waiver, while allowing a waiver of the remaining duty and interest pending appeal disposal upon the said deposit. Compliance is to be reported by a specified date.

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