2017 (6) TMI 92 - AT - Customs

Classification of imported coal - whether it is to be considered as Bituminous coal or Steam coal? - Held that - the issue has been decided by Larger Bench, where different benches of CESTAT have taken different views at the instance of the parties, and it was held that liberty is granted to the applicants/assessees to come again before this Tribunal after having the final verdict from the Apex Court, within the prescribed time - appeal allowed.

Summary

Issues:
Classification of imported coal under CTH 27011920 as "Steam Coal" for duty exemption vs. Customs Department's view of classification under CTH 2701 1200 as "Bituminous coal" chargeable to duty @ 5% and CVD @ 6%. Benefit of Notification No.12/2012-Cus. dt. 17/03/2012. Confiscation of imported goods under Section 111(m) of the Customs Act. Imposition of penalty under Section 112(a) of the Customs Act. Applicability of the decision of the Larger Bench of the Tribunal regarding the classification of imported coal.

Classification of Imported Coal:
The appellant imported coal and classified it under CTH 27011920 as "Steam Coal," claiming duty exemption under Notification No.12/2012-Cus. The Customs Department contended that the imported goods were "Bituminous coal" classifiable under CTH 2701 1200, attracting duty @ 5% under the same notification. The Commissioner ordered classification under 2701200, denying the benefit of the notification and demanding differential duty of &8377;1,61,08,449. The impugned order also included confiscation under Section 111(m) and a penalty of &8377;32,20,000 under Section 112(a) of the Customs Act.

Applicability of Larger Bench Decision:
The case involved a dispute on the classification of imported coal as Bituminous or Steam coal. Different benches of CESTAT had conflicting views. The Larger Bench considered the issue and noted that various benches had differing opinions. Chennai and Ahmedabad Benches viewed it as "steam coal" with no duty, while the Bangalore Bench classified it as "Bituminous coal" attracting 5% duty. The Chennai Bench exempted pre-deposit conditions, which was challenged by the Department in the High Court. The Bangalore Bench's decision was challenged in the Supreme Court, and the matter was pending. The Tribunal granted liberty to parties to approach again after the final Supreme Court verdict.

Decision and Disposal:
Considering the Larger Bench decision, the Tribunal granted the appellant liberty to return after the Supreme Court's final verdict. The present appeal and stay application were disposed of accordingly. The operative part of the order was pronounced on 24/04/2017.

This summary provides a detailed analysis of the judgment involving the classification of imported coal, the application of relevant notifications, confiscation, penalty imposition, and the impact of the Larger Bench decision on the case.