2017 (11) TMI 1951 - AT - Customs

Classification of imported goods - Electrical/Gas Calcinations as well as Gas Calcined Anthracite Coal (CGA and ECA) through the EDI Systems - to be classified under CTH 2701 11 00 or under CTH 3824 90 90? - HELD THAT - The coal has undergone the process of calcinations does not alter the nature of the product as anthracite coal. The process of calcinations itself is a common treatment process applied to many solid materials. It is commonly used in Metallurgy to concentrate ore and remove hydrates and carbonates as per the ratio laid down in the case of 20 MICRONS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, RAJKOT 2005 (11) TMI 144 - CESTAT, MUMBAI . From the record, it also appears that calcine is the natural form and the same was applied in the instant case - there are no reason to interfere with the impugned order and the same is sustained - appeal dismissed.

Summary

Issues: Classification of imported goods under Customs Tariff Act, 1975

Classification of Goods:
The appeal involved a dispute regarding the classification of imported gas calcined anthracite coal and electrically calcined anthracite coal under the Customs Tariff Act, 1975. The appellant claimed classification under CTH 2701 11 00, while the Department re-classified the goods under CTH 3824 90 90, leading to a disagreement.

Order-in-Appeal and Appeal to CESTAT:
The appellant's plea was accepted in the appeal order, classifying the goods under CTH 2701 11 00. Subsequently, the Department filed an appeal before the Commissioner of Customs (Appeal), who also upheld the classification under CTH 2701 11 00. Dissatisfied, the Department appealed to the Hon'ble CESTAT, Kolkata against the Commissioner's decision.

Contentions and Analysis:
The Department argued that the calcined coal, resulting from electrical/gas calcinations, is not natural anthracite coal but a carbon additive. However, the Tribunal noted that the process of calcinations is a common treatment applied to various solid materials and does not change the nature of the product as anthracite coal. Reference was made to the case of 20 Microns Ltd. v. CCE - 2006 (199) E.L.T. 41 (Tri.-Mumbai) to support this point.

Decision and Rationale:
Upon reviewing the case record and considering the arguments presented, the Tribunal found that the goods in question were correctly classified under CTH 2701 11 00. It was established that the process of calcinations did not alter the nature of the product as anthracite coal. Therefore, the impugned order was sustained, and the appeal filed by the Department was dismissed. The Tribunal also disposed of the COD.

Conclusion:
The judgment resolved the classification dispute by affirming the classification of imported goods under CTH 2701 11 00, rejecting the Department's contention that the calcined coal was a carbon additive rather than anthracite coal. The decision was based on the understanding that the process of calcinations did not change the essential nature of the product, in line with established principles and precedents.