2017 (2) TMI 237 - HC - Customs

Maintainability of appeal - classification of goods in dispute - Held that - the issue raised in the Writ Petition is a mixed question of fact and law - having regard to the scope of controversy the petitioner should avail of the alternative remedy by way of an appeal which is admittedly available to it. The petitioner is thus given liberty to withdraw the Writ Petition with leave to approach the first appellate authority i.e. Commissioner of Customs (Appeals) - petition not maintainable - petition dismissed.

Summary

Issues:
1. Interpretation of Customs Tariff Headings
2. Review of Adjudicating Authority's Decision

Interpretation of Customs Tariff Headings:
The judgment involves a second round of litigation initiated by the petitioner. Initially, the petitioner approached the court against a show cause notice dated 07.08.2015. The court disposed of the first writ petition by a speaking order dated 21.06.2016. The court highlighted the significance of the test reports from the Central Fertilizer Quality Control and Training Institute, stating that the reports confirmed to standards and should bind the Department in determining the classification of goods. The court also considered the Fertiliser (Control) Order and the Certificate of Origin as supporting evidence. The court directed the petitioner to submit all relevant facts to the show cause notice, emphasizing that the Department should make a decision based on expert reports and legal provisions within a specified timeframe.

Review of Adjudicating Authority's Decision:
The adjudicating authority subsequently revisited the matter, providing the petitioner with an opportunity to present materials and a personal hearing. The authority determined that the goods fell under Customs Tariff Heading 2840, contrary to the petitioner's assertion that they belonged under Customs Tariff Heading 3102. The court recognized the issue as a mixed question of fact and law, despite its previous order. Considering the scope of the controversy, the court advised the petitioner to utilize the available appellate remedy by appealing to the Commissioner of Customs (Appeals). The court granted the petitioner the liberty to withdraw the writ petition and approach the appellate authority, with a reminder for the appellate authority to consider the court's previous observations. The court disposed of the writ petition accordingly, without imposing any costs.

This judgment primarily addresses the interpretation of Customs Tariff Headings, emphasizing the importance of expert reports, legal provisions, and supporting documents in determining the classification of goods. It also highlights the availability of appellate remedies for parties dissatisfied with adjudicating authorities' decisions, guiding them on the appropriate course of action for further review.