2018 (2) TMI 1541 - AT - Customs

Classification of imported goods - Rommelag Bottle Packing Machine - classification under CTH 84224000 was changed to under CTH 84773000 by Revenue - Held that - For such variation there is no reason stated by Revenue why the first classification sought as CTH 84773000 was converted into CTH 84775900. Neither in page No.327 nor in page 348 of the appeal folder exhibiting adjudication finding reason for change of classification under CTH 84224000 to CTH 84775900 is explained - Law is well settled that burden of proof is of Revenue to show that goods falls under a different CTH than declared - appeal allowed.

Summary

Issues: Classification of imported goods under CTH 84224000 challenged by Revenue, converted to CTH 84775900 without proper explanation.

In the judgment, the appellant imported Rommelag Bottle Packing Machine and claimed its classification under CTH 84224000. However, the Revenue sought to change the classification to CTH 84773000, which was further converted to CTH 84775900 without providing a valid reason for the change. The record indicated that the goods were initially classified under CTH 84775900 by the Revenue, not under CTH 84773000. The lack of explanation by the Revenue for the change in classification was deemed crucial, as the burden of proof lies with the Revenue to demonstrate that the goods should be classified differently than declared. The judgment referenced the case law of Union of India Vs. Garware Nylons Ltd. (1996) to emphasize the importance of providing reasons for such classification changes. As a result, the appeal was allowed based on the failure of the adjudication order to justify the alteration in classification.

The judgment clarified that the appellant's pleadings focused solely on the classification issue, limiting the scope of examination to this specific aspect without delving into other unpleaded matters. Therefore, the appeal was allowed only concerning the classification issue, highlighting the importance of maintaining a clear and reasoned approach in matters of classification of imported goods.