2022 (11) TMI 109 - AT - Customs

Levy of ADD - Classification of imported goods - FRP rods - to be classified under CTH 70199090 and consequently the same is liable for payment of Anti Dumping Duty under Notification No 30/2011- CUS (ADD) dated 04.03.2011 or to be classified under 70022090? - HELD THAT - The goods imported by the appellant is FRP rods which is not under dispute even by the department. The department sought to classify the said product under CTH 70199090. The CTH 70199090 is in respect of the Glass Fibre - CTH 7002 is meant for the product manufactured out of glass fibre. The glass fibre is raw material and product in question is final product. Hence, undoubtedly both items are entirely different and clearly classifiable under CTH 70022090. Since the FRP rods clearly specified against the Tariff entry of 7002 by any stretch of imagination the same cannot be classified under CTH 70199090 as held by the lower authority. Moreover, the Hon ble Supreme Court judgment in KEMROCK INDUSTRIES EXPORTS LTD. VERSUS COMMR. OF C. EX., VADODARA 2007 (3) TMI 260 - SUPREME COURT held that the FRP rods are classifiable under chapter 39 since, it is nobody case in the present case that the product is classifiable under chapter 39 however, in view of the Hon ble Supreme court judgment it is clear that under any situation the FRP rods cannot be classified under 70199090. If this so then the Anti dumping duty which is levied on goods falling under 70190900 is not applicable in the present case. Appeal allowed.

Summary

Issues: Classification of FRP rods under CTH 70022090 or CTH 70199090, Liability for Anti Dumping Duty under Notification No 30/2011- CUS (ADD)

Classification Issue Analysis:
The case revolves around the classification of FRP rods imported by the appellant under either CTH 70022090 or CTH 70199090. The Revenue argued for classification under CTH 70199090, subjecting the goods to Anti Dumping Duty under Notification No 30/2011- CUS (ADD). The appellant contended that the FRP rods, made of glass fiber and resin, should be classified under CTH 70022090. The Tribunal analyzed the Tariff entries for both classifications. CTH 70199090 pertains to "Other articles of glass fiber," while CTH 70022090 covers "Glass rods unworked." The Tribunal found that since the FRP rods were specified under CTH 70022090, distinct from raw glass fiber, they should be classified accordingly. The Tribunal also referenced a Supreme Court judgment regarding the classification of FRP rods under Chapter 39, emphasizing that the product cannot be classified under CTH 70199090. Consequently, the Anti Dumping Duty applicable to goods under CTH 70199090 does not apply to the FRP rods.

Liability for Anti Dumping Duty Analysis:
The issue of liability for Anti Dumping Duty arose due to the classification dispute. The Revenue argued that if the FRP rods were classified under CTH 70199090, they would be subject to Anti Dumping Duty under Notification No 30/2011- CUS (ADD). However, the Tribunal's classification decision under CTH 70022090 led to the conclusion that the Anti Dumping Duty was not applicable to the imported FRP rods. By setting aside the impugned order and allowing the appeal, the Tribunal provided consequential relief to the appellant, if any, in accordance with the law. The judgment was pronounced on 01.11.2022 by the Tribunal.

In conclusion, the Appellate Tribunal CESTAT Ahmedabad ruled in favor of the appellant, determining that the FRP rods should be classified under CTH 70022090 and are not liable for Anti Dumping Duty under Notification No 30/2011- CUS (ADD). The detailed analysis of the classification issue and the liability for Anti Dumping Duty provided clarity on the correct Tariff classification and duty implications, ensuring a fair and just resolution in the case.