2018 (4) TMI 855 - AT - Customs

Concessional rate of duty - N/N. 12/2012 C us dated 17 03.2012 - imported pre-forms semi precious stones - claim of the appellant is that their product should continue to be treated as rough gem stone only and whatever working done on the same is incidental for due packing and export - Held that - the later amendment carried out by N/N. 12/13 clarifies that prior to 01.03.2013 duty applicable on performs of semi precious stone was the tariff rate of duty i.e. @ 10%. During 17.3.2012 to 28.2.2013 the applicable duty on perform of semi-precious stones was @ 10% i.e. tariff rate of duty - pre-forms imported by the appellants are not covered by any concessional rate of duty during the period of import - appeal dismissed - decided against appellant.

Summary

Issues:
Classification of imported semi-precious stones under Customs Tariff Heading (CTH) 71039990 for duty assessment at 2% under Notification No. 12/2012 - Cus dated 17.03.2012 vs. Revenue's contention of classification as intermediate stage between 'rough' and 'cut and polished' stones for duty assessment at 10%.

Analysis:
The appellant imported pre-form semi-precious stones and claimed classification under CTH 71039990 for a duty rate of 2% under Notification No. 12/2012. The Revenue sought to classify the product as an intermediate stage between 'rough' and 'cut and polished' stones, proposing a duty rate of 10%. The dispute revolved around whether the imported pre-forms should be considered fully eligible for exemption as rough semi-precious stones under the unamended notification. The lower authorities upheld the Revenue's view, citing the characteristics of the pre-forms falling under 'semi-precious stones otherwise worked' under CTH 71039990.

The Tribunal analyzed the nature of the product, noting that pre-forms are an intermediate stage between 'rough' and 'cut and polished' stones. The Tribunal found that the pre-forms imported by the appellant did not fall under any concessional duty rate during the import period. The Tribunal held that the later amendment in Notification No. 12/2013 clarified the issue further, supporting the Revenue's classification of the pre-forms for duty assessment at the tariff rate of 10%.

Based on the factual findings and the amendment in the notification, the Tribunal concluded that the appellant's claim that the product should be treated as rough gemstones was not sustainable. The Tribunal affirmed the lower authorities' decision, dismissing the appeal and upholding the duty assessment at the tariff rate of 10% on the imported pre-form semi-precious stones.