2018 (4) TMI 1953 - AT - Customs

Classification of imported goods - re-rollable plate pipes material scrap - goods found to be second and defective pipes - to be classified under the Heading 7204 49 00 others which attracts the duty @ 15% or under the Heading 72082510 as plates ? - benefit of N/N. 21/2002-Cus., dated 1-3-2002 at Serial No. 190B - HELD THAT - It appears that in the previous orders the Department has classified the same item under the Heading 7204 49 00. It is the finding of the original authority that the goods were found to be seconds and defective steel plates which cannot be considered as fresh plates - When it is so, then the assessee-Appellants have rightly classified the subject goods as Heading 7204 49 00. Hence, the enhanced value declared by the Department is set aside and the goods will have to be accepted on the declared value. The impugned orders are set aside and the appeals are allowed.

Summary

Issues involved: Classification of imported goods, benefit of Notification No. 21/2002-Cus.

Classification of imported goods:
The case involved two appeals filed by the assessee-Appellants against the Order-in-Original and Order-in-Appeal passed by the Commissioner Customs and Commissioner of Customs (Appeals) respectively. The imported goods were declared as re-rollable plate & pipes material scrap, but upon examination, they were found to be misdeclared as second and defective pipes, re-rollable HMS material scrap, and defective steel plates. The Department sought to classify the goods under a different heading than what the assessee-Appellants had declared, which attracted the same duty rate. The assessee-Appellants claimed the benefit of Notification No. 21/2002-Cus., but the Department denied it. The Tribunal found that the original authority had classified the goods differently, but based on the nature of the items, the Tribunal agreed with the assessee-Appellants' classification under Heading 7204 49 00. Consequently, the enhanced value declared by the Department was set aside, and the goods were to be accepted on the declared value.

Benefit of Notification No. 21/2002-Cus.:
The assessee-Appellants claimed the benefit of Notification No. 21/2002-Cus., dated 1-3-2002 at Serial No. 190B. However, the Department had denied this benefit. The Tribunal, after hearing both sides and examining the material on record, found that the goods were rightly classified by the assessee-Appellants under Heading 7204 49 00. As a result, the impugned orders were set aside, and both appeals filed by the assessee-Appellants were allowed.

This judgment by the Appellate Tribunal CESTAT Ahmedabad addressed the issues of the classification of imported goods and the benefit of Notification No. 21/2002-Cus. The Tribunal upheld the assessee-Appellants' classification of the goods under Heading 7204 49 00, rejecting the Department's classification and enhanced value. The benefit claimed under the notification was also granted, leading to the setting aside of the impugned orders and allowing both appeals in favor of the assessee-Appellants.