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2017 (5) TMI 737 - AT - CustomsClassification of imported copper sulphate technical grade - Appellant filed bill of entry dated 10.1.2006 claiming classification under CTH 28332500 - Revenue claims classification under CTH 3808 on the ground that the said goods find mention in the Schedule to the Insecticides Act and there being a requirement of an import permit to be procured from Central Insecticides Board - whether goods are liable to be classified under CTH 2833 or CTH 3808? - Held that - the adjudicating authority has not given any reason whatsoever for reclassification of the goods imported by the appellant. Section 38 states that exemption is granted from application of Insecticides Act for the sub-clauses mentioned therein. It can be noticed that sub-clause (1)(b) specifically talks about if the substance, even if it is mentioned in the Schedule to the Insecticides Act - the adjudicating authority has himself held that copper sulphate technical grade is used by the appellant for manufacturing of zinc concentrate. In our considered view, the exemption under Section 38(1)(b) of the Insecticides Act will directly apply in the case in hand. Appeal allowed - decided in favor of appellant.
Issues: Classification of imported "copper sulphate technical grade" under CTH 28332500, applicability of Insecticides Act, reclassification of goods to CTH 3808, exemption under Section 38(1)(b) of the Insecticides Act, violation of Foreign Trade Policy.
The judgment by the Appellate Tribunal CESTAT Mumbai involved an appeal against the order-in-original No.13/2006 dated 31.1.2006 concerning the classification of imported "copper sulphate technical grade" under CTH 28332500. The appellant claimed the goods were essential for manufacturing zinc concentrate and not subject to registration under the Insecticides Act. The adjudicating authority reclassified the goods to CTH 3808, citing the need for registration from the Central Insecticides Board. The appellant argued that as an actual user for manufacturing zinc concentrate, they were exempt from the Insecticides Act, and there was no violation of the Foreign Trade Policy. Upon review, the Tribunal found the impugned order to be unsustainable for several reasons. Firstly, the adjudicating authority failed to provide any reasoning for the reclassification of the goods. Secondly, it was noted that the appellant, as an actual user for manufacturing zinc concentrate, fell under the exemption provided in Section 38(1)(b) of the Insecticides Act. This section exempts substances intended for purposes other than preventing, destroying, or repelling insects, rodents, fungi, weeds, or other forms of plant or animal life not useful to human beings. Since the appellant's use of copper sulphate technical grade was for manufacturing zinc concentrate, the Tribunal held that the exemption under Section 38(1)(b) applied in this case. Therefore, the impugned order was set aside, and the appeal was allowed with consequential relief, if any, as pronounced in court by the Tribunal.
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