2018 (4) TMI 1192 - AT - Customs

Liability of export duty - export of ductile iron spun pipes - N/N. 66/2008-Cus. dated 10.5.2008 - Held that - when the export duty notification mentions tubes and pies of iron or steel, those of such tubes and pipes made up of iron or steel shall be liable to export duty. No exclusion or restriction is placed on such duty entry - A plain reading of the Notification and the description of the export goods will indicate that the appellant is liable to export duty in terms of the said Notification - appeal dismissed - decided against Appellant.

Summary

Issues: Export duty liability on cast iron pipes under Notification No. 66/2008-Cus. dated 10.5.2008

Issue 1: Classification of exported pipes and applicability of export duty

The appellants exported cast iron pipes and disputed the export duty levy under Notification No. 66/2008-Cus. The appellant argued that their product falls under Import Tariff Heading 7303 for cast iron tubes, not under Heading 7304 for tubes and pipes of iron or steel subject to export duty. The Board's clarification expanded the duty liability, which the appellant deemed legally untenable. The Revenue contended that since the appellant exported cast iron pipes, classified as iron pipes, they are liable for export duty under the notification.

Analysis for Issue 1:

The Tribunal noted that the exported pipes were cast iron pipes, and the export schedule lacked detailed classification. The Board acknowledged the resulting confusion due to this lack of specificity. The appellant's argument was based on the belief that their product, classified under 7303 for cast iron tubes, should not be subject to export duty under 7304 for tubes and pipes of iron or steel. However, the Tribunal disagreed, emphasizing that the notification for export duty specified tubes and pipes of iron or steel without excluding cast iron. Import Tariff Heading 7304 refers to tubes and profiles of iron (other than cast iron) or steel, while the notification does not exclude iron pipes. The Tribunal inferred from the Board's clarification that tubes and pipes made of iron or steel are liable for export duty under the notification, without any exclusion or restriction. Therefore, based on a plain reading of the notification and the exported goods' description, the Tribunal concluded that the appellant is indeed liable for export duty as per the notification, dismissing the appeal.

This detailed analysis of the judgment addresses the classification of exported cast iron pipes and the applicability of export duty under Notification No. 66/2008-Cus., providing a comprehensive understanding of the legal reasoning and decision-making process involved in this case.