2016 (11) TMI 221 - AT - Customs

Classification of imported goods - Fenbendazole - whether classified under heading 29332990 or under heading 29339900 - Harmonised Commodity Data Base of World Customs Organization (WCO) - Held that - the only ground on which the impugned order is based is the so called database of world customs organization. The Revenue has failed to produce the same and therefore, the same cannot be considered for the purpose of classification - The learned Counsel has clearly demonstrated from the structure of the compounds that fenbendazole contains imidazole ring. Any chemical containing imidazole is classifiable under heading 29332100 to 29332990. In view of the above, the classification sought by the appellant is upheld. The appeal is accordingly allowed.

Summary

Issues involved: Classification of imported goods under heading 29339900, contention of correct classification under heading 29332950, reliance on Harmonised Commodity Data Base of World Customs Organization (WCO) for classification, failure to produce WCO database by Revenue, classification based on presence of imidazole ring in compounds, appeal against confiscation and penalty.

Classification under heading 29339900: The case involved the classification of imported 'Fenbendazole' by M/s. Shubham Pharmachem Pvt. Ltd. The Revenue contended that the item should be classified under heading 29339900, requiring a license as per foreign trade policy. The goods were held to be classified under this heading, leading to confiscation and imposition of penalty. However, the appellant argued for classification under heading 29332950 based on the presence of an imidazole ring in the compound.

Contending correct classification under heading 29332950: The appellant's counsel argued that the goods should be classified under heading 29332950 as compounds containing an imidazole ring fall under headings 293321 to 293329. He pointed out that compounds like tinidazole, mebendazole, dimetridazole, and albendazole are classified under heading 293329, emphasizing the presence of the imidazole ring as the basis for classification. The appellant presented molecule structures to support the argument that 'Fenbendazole' should be classified under heading 29332950.

Reliance on WCO database for classification: The appellant's counsel challenged the Revenue's reliance on the Harmonised Commodity Data Base of the World Customs Organization (WCO) for classification. He argued that the database was not produced or properly considered, questioning its relevance to the classification at hand. The Tribunal noted that the impugned order was solely based on this database, which the Revenue failed to produce, rendering it irrelevant for classification purposes.

Decision and analysis: After reviewing the submissions, the Tribunal upheld the appellant's classification under heading 29332950. It was emphasized that any chemical containing an imidazole ring is classifiable under headings 29332100 to 29332990. The Tribunal found merit in the appellant's argument based on the structure of the compounds, leading to the allowance of the appeal against confiscation and penalty. The judgment was pronounced on 24/08/2016 by the Tribunal comprising Mr. Ramesh Nair, Member (Judicial) and Mr. Raju, Member (Technical).