2018 (3) TMI 1071 - AT - Customs

Classification of semi-finished goods - spectacle lenses - eligibility for exemption N/N. 6/2006-CE dated 1.3.2006 providing for exemption to spectacle lens - Whether the goods are classifiable under CTH 9001.90.90 of the Customs Tariff Schedule or otherwise? - Held that - this Tribunal in appellant s own case Essilor India Pvt Ltd Versus Commissioner Of Customs And Service Tax, Bangalore-Cus 2018 (3) TMI 974 - CESTAT, BANGALORE has allowed the appeals of the appellant, holding that there is no change in the tariff rate or in the nomenclature of various entries in the earlier notifications which were of tariff heading of 8 digits - appeal allowed - decided in favor of appellant.

Summary

Issues involved: Classification of semi-finished spectacle lenses and eligibility for exemption under Notification No.6/2006-CE dated 1.3.2006.

Analysis:

Classification of Goods:
The appellants imported semi-finished spectacle lenses and sought clearance classifying them under specific subheadings of the Customs Tariff Schedule, claiming exemption under Notification No.6/2006-CE. However, the Assessing Authority classified the lenses under a different subheading, denying the exemption benefit. The Commissioner (A) upheld this classification, treating the lenses as 'other' optical elements under Chapter subheading 9001.90.90. The appellant contended that the imported lenses were distinct from 'ophthalmic blank' and should be classified as 'to be finished spectacle lenses,' eligible for the exemption. The appellant cited a previous apex court judgment in their favor, emphasizing the erroneous classification by the authorities. The Tribunal noted that both the apex court and their own previous decision favored the appellants' argument, allowing the appeals and granting consequential relief.

Legal Interpretation and Precedents:
The appellant argued that the impugned orders were legally unsustainable as the appellate authority incorrectly treated the imported lenses as 'ophthalmic blank,' contrary to commercial recognition. They referenced a previous apex court judgment where it was clarified that the lenses should be considered as 'to be finished spectacle lenses' and entitled to the exemption under Notification No.6/2006-CE. The Tribunal, in alignment with the apex court's decision and their own precedent, allowed the appeals, emphasizing the correct legal interpretation and application of relevant notifications.

Final Decision:
Considering the consistent legal stand established by the apex court and their own previous ruling in favor of the appellants, the Tribunal allowed all the appeals with consequential relief. The Tribunal's decision was based on the correct classification of the imported semi-finished spectacle lenses as 'to be finished spectacle lenses,' ensuring the applicability of the exemption notification as per the relevant legal provisions and precedents.