2018 (2) TMI 1196 - AT - Customs

Classification of imported goods - Palm Stearin - Adjudicating authority vide speaking order classified the goods imported under chapter 38.23 as against the claim of the Respondent before him being covered under chapter 15.11 - Held that - the issue is now covered by the decision of Hon ble Apex Court in the case of Commissioner of Central Excise, Customs & Service Tax Visakhapatnam vs. Jocil Ltd 2010 (12) TMI 24 - Supreme Court of India , where it was held that their Lordships has held as under and settled the law that the classification of Palm Stearin Oil will be under chapter 38.22 - appeal allowed - decided in favor of appellant.

Summary

Issues:
Classification of imported goods - Palm Stearin

Analysis:
The appeal was filed by Revenue against the order classifying the imported goods under chapter 38.23 instead of chapter 15.11. The first appellate authority set aside the order and classified the product under chapter 15.11. The issue was whether imported Palm Stearin should be classified under chapter 15.11 or chapter 38.22. The decision of the Honorable Apex Court in a similar case was referenced, where it was held that palm stearin should be classified under chapter 38.22. The Court considered the CRCL opinion and the CBEC Circular but ultimately classified Palm Stearin under chapter 38.22 based on the express identification in Chapter 38 of the Customs Tariff Act, 1975.

The Court emphasized that applying contorted logic to classify the goods under chapter 15.11 would ignore the clear identification in Chapter 38 of the Tariff Act. The CBEC Circular needed to be harmonized with the Eight-digit First Schedule introduced in 2003, leading to the classification of the goods under Chapter 38. The Court's interpretive powers were limited by the specific enumeration in Chapter 38 of the Tariff Schedule. The judgment set aside the CESTAT's order and restored the decision of the Commissioner (Appeals) affirming the order of the Assistant Commissioner. The parties were left to bear their own costs.

In conclusion, the impugned order was set aside, and the appeal was allowed, following the precedent set by the Honorable Apex Court. The judgment clarified the classification of Palm Stearin under chapter 38.22, in line with the express identification in the Customs Tariff Act.