2016 (12) TMI 318 - AT - Customs

Classification of imported goods - Bleaching Earth V2 Super Galleon - classified under CTH 250820 or under CTH 380290 - Held that - the Grounds of Appeal of the department is not contraverting the same by any other evidence in the support of department. It is also to be noted that the appellant had filed bill of entry by describing the product as bleaching earth V2 Super Galleon and claimed classification under 250820. The Chapter Heading of 250820 describes the product that may fall under the sub-Heading which are Decolourising earth and Fuller s earth. In our view the product imported by appellant Bleaching earth may or may not be Decolourising earth but Chapter Heading 382090 covered Activated Natural Mineral Products wherein the goods can be classified. In the case in hand, there is nothing on record to show that samples of the imported goods were drawn and analysed to arrive at a conclusion that these products are Activated Natural Mineral. In the absence of any cogent evidence to show that the product would merit classification under Chapter Heading 382090, we hold that the impugned order is correct and does not require any interference - appeal dismissed - decided against Revenue.

Summary

Issues: Classification of imported products under CTH 250820 or CTH 380290, Mis-description, Time-barred demand, Principles of natural justice violation

In this case, the main issue revolves around the classification of products imported by the respondent, specifically Bleaching Earth V2 Super Galleon. The respondent initially sought classification under CTH 250820, but a subsequent show-cause notice alleged mis-description and wrong classification under CTH 380290. The adjudicating authority reclassified the product to CTH 3802.90, leading to duty demands, interest, and penalties. The first appellate authority set aside the order-in-original, stating there was no mis-declaration and the demands raised were incorrect, emphasizing that the goods were correctly classified under CTH 2508. The authority also highlighted the absence of evidence supporting re-classification under CTH 3802, thus deeming the demand time-barred. Additionally, the authority noted a violation of principles of natural justice due to the lack of essential documents provided to the appellant during the proceedings.

The appellate tribunal, after reviewing the case, found that the reasoning of the first appellate authority was sound. It emphasized that re-classification without substantial evidence was unwarranted, especially considering the lack of analysis or testing to support the classification under CTH 3802. The tribunal noted that the appellant's description of the product as Bleaching Earth V2 Super Galleon fell under CTH 250820, which covers Decolourising earth and Fuller's earth. It further pointed out that Chapter Heading 382090, which covers Activated Natural Mineral Products, did not have sufficient evidence to support reclassification. Therefore, the tribunal upheld the impugned order, rejecting the appeal and emphasizing the correctness of the initial classification under CTH 2508.

In conclusion, the tribunal upheld the decision, emphasizing the importance of providing substantial evidence for reclassification and adhering to principles of natural justice during proceedings. The case highlights the significance of accurate classification of imported products and the necessity of following due process in customs disputes.