2016 (8) TMI 478 - AT - Customs

Classification import or Oleo Pine Resin classifiable under CTH 1301.90 or CTH 1301.10 - exemption denied by revenue - burden of proof on department Held that - The case rested on the evidence if any whether available on record to show that the goods came to India were processed with the aid of power. In absence of any enquiry by Revenue or any evidence received from the Mission abroad., it is difficult to conceive that the goods were processed abroad with the aid of power. Bonafide belief of appellant on the basis of certificates issued by forest department of sri lanka cannot be ruled out without Revenue leading to any cogent evidence to the contrary appeal allowed.

Summary

Issues: Classification of imported goods under CTH 1301.90 or 1301.10, Burden of proof on classification, Evidence required for classification determination

In this judgment by the Appellate Tribunal CESTAT CHENNAI, the appellant contended that 64 consignments of "Oleo Pine Resin" imported should be classified under CTH 1301.90, while the revenue argued for classification under 1301.10, which pertains to resin manufacture with power. The revenue denied exemption under CTH 1301.90 due to lack of evidence on processing without power, whereas the appellant claimed the goods fit under this classification due to absence of proof of power usage. The appellant relied on the burden of proof principle as per the decision of the Honorable Supreme Court in a specific case. The revenue's main argument was the lack of evidence from the appellant, referencing a relevant circular. After considering both sides, the Tribunal emphasized the importance of evidence to determine if the goods were processed with power, noting the lack of inquiry or foreign evidence from the revenue. The Tribunal found merit in the appellant's belief based on a certificate from the Forest Department of Srilanka, stating the goods were power-free, and allowed the appeal based on the legal precedent cited.