2015 (3) TMI 242 - AT - Customs

Classification of goods - misdeclaration of goods - Held that - Entire case of the Revenue is based upon description of the goods made in the subsequent bills of entry filed on 15.5.2007. Inasmuch as the description for the said bills of entry was found to be wrong, which was based upon the Chartered Engineers certificate, Revenue arrived at a finding that the description in the earlier Bills of Entries were also wrong. We note that at the time of clearance of goods in terms of earlier Bills of Entries, the same were put to first check examination - samples were taken and referred to some Chartered Engineer M/s. Varun Chandok. As per his report dated 8.3.07, the goods were examined, market survey was undertaken and were found to be wheel rim of harvester combine. He has also opined about CIF value of the goods as also quality and condition of wheel rim and agreed with the value declared by the importer. The goods were cleared only after the first examination report as also the opinion of the same Chartered Engineer. - In the above scenario, the Revenue s contention that the earlier imports were also of wheel rims of commercial vehicles cannot be appreciated. Merely because the import is from same supplier and the weight of the rim is identical to the weight of present rim, will not make them the rims of commercial vehicles instead of rims of harvester combine, especially when the same chartered engineer has examined the earlier imported goods and have conducted market inquiry and found the same to be wheel rims of harvester combine, the Revenue s endeavor to change the classification of the goods earlier imported by changing the description, is neither justified nor warranted. - Decided in favour of assessee.

Summary

Issues:
Classification of imported goods under Customs Tariff Act, 1975; Countervailing Duty applicability; Correctness of goods description in Bills of Entries; Revenue's contention regarding classification change.

Classification of imported goods under Customs Tariff Act, 1975:
The appellant imported wheel rims for a harvester combine and claimed classification under heading 8433 9000, not attracting Countervailing Duty. The goods were examined, and the Chartered Engineer confirmed the description, leading to clearance on payment of basic customs duty.

Countervailing Duty applicability:
Subsequently, another consignment was imported, and the classification was changed to Chapter 87, attracting Countervailing Duty based on a different Chartered Engineer's opinion that the wheel rims were for commercial vehicles. This change led to a show cause notice proposing duty demand on earlier imports.

Correctness of goods description in Bills of Entries:
The Revenue alleged that the earlier imports were also for commercial vehicles, initiating proceedings against the appellant. The Revenue's case relied on the subsequent Bills of Entries' description change and the Chartered Engineer's certificate, leading to the duty demand.

Revenue's contention regarding classification change:
The Revenue argued that the earlier imports were misclassified based on the subsequent Bills of Entries. However, the Tribunal found that the Chartered Engineer had previously confirmed the goods as wheel rims for a harvester combine, and changing the classification based on the weight and supplier alone was unjustified. The impugned order was set aside, and the appeal was allowed in favor of the appellant.