2018 (7) TMI 546 - AT - Customs

Classification of imported goods - Aluminium Composite Panels - benefit of N/N. 21/2002 - whether the goods are classifiable under CTH 7606 or under CTH 7610? - Held that - A sample plate of impugned goods is produced - It is in the form of a sheet and definitely is not a structure, or part of structure falling under 7610. It cannot be used as structure or part of structure and is only plates that are generally used for cladding the surfaces. These are sheets which are cut and grooved to clad surfaces, walls etc. They cannot be termed as structures or parts used for construction. The Commissioner (Appeals) has rightly classified the same under 7606 - appeal dismissed - decided against Revenue.

Summary

Issues:
Classification of imported goods under CTH 7606 or CTH 7610 for concessional rate of duty under Notification No. 21/2002.

Detailed Analysis:

1. Factual Background:
The appellants imported goods described as 'Aluminium Composite Panels' and declared classification under CTH 7606, claiming a concessional rate of duty under Notification No. 21/2002. The department contended that the goods should be classified under CTH 7610 and denied the benefit of the notification. The adjudicating authority classified the goods under CTH 7610, leading to an appeal by the department before the Tribunal.

2. Arguments by the Department:
The department, represented by the Ld.AR, reiterated the grounds of appeal, emphasizing the classification under CTH 7610 for the imported goods.

3. Arguments by the Respondent:
The respondent's counsel argued that the goods imported were not ready for use in a structure as they required further processing such as cutting, grooving, and bending before being utilized. The goods were in the form of sheets and not structures or parts of structures falling under CTH 7610. The counsel presented a sample plate of the goods to support the argument that they were more appropriately classified under CTH 7606 for cladding surfaces.

4. Analysis of Competing Tariff Headings:
The Tribunal reproduced the competing tariff headings, highlighting that CTH 7606 covered aluminum plates, sheets, and strips exceeding 0.2mm in thickness. On the other hand, CTH 7610 encompassed aluminum structures and parts prepared for use in structures.

5. Decision and Rationale:
After considering the arguments and examining the sample plate of the imported goods, the Tribunal concluded that the goods were not structures or parts of structures under CTH 7610 but rather sheets used for cladding surfaces. Therefore, the Commissioner (Appeals) was correct in classifying the goods under CTH 7606. The Tribunal dismissed the department's appeal, finding no grounds to interfere with the impugned order.

6. Operative Part of the Order:
The Tribunal pronounced the operative part of the order in open court, confirming the dismissal of the department's appeal.

In summary, the Tribunal upheld the classification of the imported goods under CTH 7606 for concessional duty rate, rejecting the department's contention for classification under CTH 7610.