2023 (3) TMI 702 - AT - Customs

Classification of goods - bhusi/ bhuki of pulses / pulses waste cleared from Kandla SEZ - classifiable under Chapter heading 07139099 or 11061000 of Customs Tariff Act, 1975? - eligibility for exemption Notification No. 12/2012-Cus dated 07.03.2012 - case of the department is that the goods cleared by the appellants from Kandla SEZ is Pulses Grinding (Atta of Pulses)- Powder hence the same is not classifiable under Chapter heading 07139099 but classifiable under heading 11061000. HELD THAT - The appellant declared the product as Pulses Grinding (Atta of pulses)-Powder and with this description, it prima-facie appears that the goods are not in the form of pulses but in the form of Atta or Powder. However, the learned Counsel submits that the same is not arising out of milling process as they do not have milling industry. The learned Counsel submitted a detailed affidavit of the Director of the Appellant Company. However, the said affidavit was not seen by the Adjudicating Authority. Therefore, in the interest of principle of natural justice, the Adjudicating Authority should re-consider the matter in the light of the affidavit submitted by the appellant s Director. The matter remanded to the Adjudicating Authority for fresh decision, after affording sufficient opportunity of personal hearing to the appellants. Appeals are allowed by way of remand.

Summary

Issues involved:
The classification of goods cleared from Kandla SEZ under Customs Tariff Act, 1975 and eligibility for exemption under Notification No. 12/2012-Cus dated 07.03.2012.

Classification of Goods:
The issue revolved around whether the goods, described as bhusi/bhuki of pulses/pulses waste, cleared from Kandla SEZ should be classified under Chapter heading 07139099 or 11061000 of the Customs Tariff Act, 1975. The department argued that the goods were Pulses Grinding (Atta of Pulses)-Powder, falling under heading 11061000.

Appellant's Submission:
The appellant, represented by Shri S.J. Vyas and Shri M.A. Mehta, contended that as they do not have a milling industry, the product in question arises in the usual course of processing of pulses and is in the form of bhusi/bhuki, tukdi of pulses, not atta. They emphasized that no further processing is carried out, and the product remains as pulses in tukdi or coarse form, warranting classification under Chapter heading 07139099. They supported their argument with a detailed affidavit from the Director of the Appellant Company, clarifying the facts and process.

Revenue's Argument:
Shri Kalpesh P Shah, representing the Revenue, reiterated the findings of the impugned order, supporting the classification under heading 11061000.

Tribunal's Decision:
After considering the submissions and perusing the record, the Tribunal noted that the appellant had declared the product as Pulses Grinding (Atta of pulses)-Powder, implying a form different from pulses. However, given the absence of a milling industry, the Tribunal found merit in the appellant's argument supported by the Director's affidavit. As the affidavit was not considered by the Adjudicating Authority, the Tribunal, in adherence to the principle of natural justice, set aside the impugned orders and remanded the matter for a fresh decision, directing the Adjudicating Authority to review the case in light of the affidavit and provide sufficient opportunity for a personal hearing to the appellants. The appeals were allowed by way of remand.