2018 (11) TMI 1306 - AT - Customs

Classification of imported goods - raw jute cutting grade imported by the appellant from Bangladesh through LCS Petrapole - whether classified under CTH 5303.9010 of Customs Tariff Act, 1975 or under CTH 5303.1010 of Customs Tariff Act, 1975? - Held that - Issue is no more res-integra as is settled in the case of M/S. NAFFAR CHANDRA JUTE MILLS LTD., M/S. AI CHAMPDANY INDUSTRIES LTD. AND M/S. GANGES MANFACTURING CO. LTD VERSUS COMMISSIONER OF CUSTOMS (PREVENTIVE), KOLKATA 2014 (8) TMI 282 - CESTAT KOLKATA , where it was held that the inference goes in favour of the assessee that what they had imported, were raw jute of cutting grade and correctly classifiable under sub-heading 53031010 of CTA, 1975. The appellant has appropriately classified the imported goods i.e. raw jute cutting grade under Tariff Heading 53039010 of the Customs Tariff Act, 1975 and has rightly claimed the benefit of Notification Nos.21/2002-Cus dt.01.03.2002 and 105/99-Cus dt.10.05.1999 - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
1. Classification of imported raw jute cutting.
2. Applicability of exemption notifications.
3. Limitation period for issuing show-cause notice.
4. Validity of the Commissioner (Appeals) order.

Issue-wise Detailed Analysis:

1. Classification of Imported Raw Jute Cutting:
The primary issue was whether the imported raw jute cutting should be classified under Chapter Tariff Heading 5303.1010 or 5303.9010 of the Customs Tariff Act, 1975. The appellant classified the goods under Tariff Heading 5303.1010, claiming the benefit of Notification Nos. 21/2002-Cus and 105/99-Cus. The Tribunal referred to the judgment in Naffar Chandra Jute Mills Ltd. Vs. CC (Preventive), Kolkata, which held that raw jute cutting should be classified under Tariff Heading 5303.1010. The Tribunal concluded that the imported goods were raw jute of cutting grade and correctly classifiable under sub-heading 5303.1010.

2. Applicability of Exemption Notifications:
The appellant claimed the benefit of Notification Nos. 21/2002-Cus and 105/99-Cus, which provide exemptions for raw jute. The Tribunal, relying on the earlier judgment, held that since the goods were classified under Tariff Heading 5303.1010, the benefit of the exemption notifications automatically applied. The Tribunal found force in the appellant's contention that the benefit should not be denied under the new eight-digit code of classification.

3. Limitation Period for Issuing Show-Cause Notice:
The Commissioner (Appeals) dropped the demand for two Bills of Entry on the grounds of limitation, as the show-cause notice was issued after the normal period of limitation under Section 28(2) of the Customs Act, 1962. The Tribunal upheld this decision, recognizing that the show-cause notice was issued beyond the permissible time frame.

4. Validity of the Commissioner (Appeals) Order:
The appellant contested the order of the Commissioner (Appeals), which had confirmed the primary adjudicating authority's order but dropped the demand for two Bills of Entry due to the limitation period. The Tribunal found that the Commissioner (Appeals) had correctly applied the limitation period and that the classification of the goods under Tariff Heading 5303.1010 was appropriate. Consequently, the orders of the primary adjudicating authority and the Commissioner (Appeals) were set aside.

Conclusion:
The Tribunal allowed the appeal, holding that the appellant had appropriately classified the imported raw jute cutting under Tariff Heading 5303.1010 and was entitled to the benefits of the exemption notifications. The appeal was allowed with consequential relief to the appellants, if any.