2017 (10) TMI 154 - AT - Customs

Classification of goods - Steam Coal - Bituminous Coal - Held that - When the matter was heard before the Larger Bench, taking note of the fact that the issue has already been taken up and pending before the Hon ble Supreme Court, the Larger Bench relegated these Appeals to the respective Benches to dispose the same in the light of the observations of Larger Bench in its order dt.16.01.2017 - the present appeals are disposed of with liberty to the appellants to approach this Tribunal after final verdict on the issue of classification of Steam Coal and Bituminous Coal from the Hon ble Apex Court.

Summary

Issues: Classification of Steam Coal and Bituminous Coal, Ancillary issues raised in the appeals, Enforcement of demands by Revenue, Status quo on recovery and refund during the period, Addressing ancillary issues after the verdict of the Hon'ble Supreme Court.

Classification of Steam Coal and Bituminous Coal:
The appeals were taken up by the Larger Bench to resolve the conflicting views on the classification of Steam Coal and Bituminous Coal. Different benches of CESTAT had expressed varying opinions on the classification issue. The appellants imported coal from different countries, classifying it under different sub-headings. The Chennai and Ahmedabad Benches considered it as steam coal attracting no duty, while the Bangalore Bench classified it as Bituminous coal attracting a 5% duty. The Larger Bench referred the matter back to the respective Benches to dispose of the appeals in light of its observations. The judgment of the Larger Bench was binding, and liberty was granted to appellants to approach the Tribunal after the final verdict from the Supreme Court.

Ancillary issues raised in the appeals:
Apart from the major issue of classification, various ancillary issues were raised in the appeals. The advocates representing the appellants highlighted these issues, which would remain undisposed until the main issue was resolved. The Tribunal assured that all ancillary issues would be addressed after the Supreme Court's verdict on the classification of Steam Coal and Bituminous Coal.

Enforcement of demands by Revenue:
The Revenue sought to enforce the demands for the outstanding amounts in each case after the disposal of the appeals. They argued that the judgment of the Larger Bench was binding, and more than 350 cases involving substantial amounts were pending before different Benches. The Revenue requested permission to recover the amounts, emphasizing the financial implications of the pending appeals.

Status quo on recovery and refund during the period:
The Tribunal decided that neither the Revenue could enforce demands nor the appellants could claim refunds during the period between the Tribunal's order and the final verdict of the Supreme Court. In the interest of justice, the status quo was to be maintained, ensuring no processing of recovery or refund of the amounts involved in the appeals until the Supreme Court delivered its final verdict.

Addressing ancillary issues after the verdict of the Hon'ble Supreme Court:
The Tribunal clarified that even though the main issue was the classification of coal, any ancillary issues raised by the appellants would be addressed after the Supreme Court's verdict on the classification issue. Both parties were granted liberty to approach the Tribunal after the Supreme Court's verdict. The appeals and all connected miscellaneous applications were disposed of accordingly.