2023 (5) TMI 938 - AT - Customs

Classification of imported goods - aluminous cement - to be classified under CTH 25233000 or under CTH 25239020? - benefit of N/N. 21/2002-Cus dated 01.03.2002 Sl. No. 448A and N/N. 12/2012-Cus dated 17.03.2012 Sl. No. 115A denied - HELD THAT - The said issue has come up before this Tribunal in the case of M/S VESUVIUS INDIA LTD, ARUN KUMAR GIRI, SHRI THUMMA ANTONY, PLANT MANAGER, M/S VESUVIUS INDIA LTD VERSUS COMMISSIONER OF CUSTOMS 2019 (11) TMI 499 - CESTAT HYDERABAD where the Tribunal has examined the issue and held that A plain reading of the notifications shows that the exemption is available for any high alumina cement falling under chapter 25. It does not distinguish between high alumina cement and low alumina cement. If the intention of the notification was to confine it to aluminous cement falling under a specific heading of the Customs Tariff, it would have said so. In this case also, the respondent has imported Alumina Cement and filed Bills of Entry for their clearance claiming the classification under CTH 25233000 - Further the respondent has manufactured refractory bricks and for that, they have imported the impugned goods and this issue has been examined by this Tribunal in the case of Vesuvius India Ltd. and it was held that the correct classification of the impugned goods is under CTH-25233000 and the respondent is entitled the benefit of exemption Notification No.21/2002-Cus dated 01.03.2002 Sl.No.448A and subsequent Notification. The issue is no more res integra and the correct classification is under CTH-25233000 and the respondent is entitled to the benefit of exemption Notification No.21/2002-Cus dated 01.03.2002 Sl.No.448A and subsequent Notification - Appeal of Revenue dismissed.

Summary

Issues Involved:
1. Classification of imported aluminous cement.
2. Entitlement to benefit under Notification No. 21/2002-Cus and Notification No. 12/2012-Cus.
3. Allegations of mis-declaration and imposition of penalties.

Summary:

1. Classification of Imported Aluminous Cement:
The primary issue was whether the imported aluminous cement should be classified under CTH 25233000 or CTH 25239020. The revenue argued that the cement should be classified as High Alumina Refractory Cement (CTH 25239020) due to its alumina content being 40% and above. The Tribunal referenced a similar case, Vesuvius India Ltd. Vs. Commissioner of Customs, where it was held that aluminous cement, regardless of its alumina content, should be classified under CTH 25233000. The Tribunal concluded that the correct classification for the imported aluminous cement is under CTH 25233000.

2. Entitlement to Benefit Under Notification No. 21/2002-Cus and Notification No. 12/2012-Cus:
The respondents claimed the benefit of these notifications for their imported aluminous cement. The Tribunal noted that the exemption is available for any high alumina cement falling under Chapter 25, without distinguishing between high and low alumina cement. Since the imported cement was used for manufacturing refractory bricks and fell under Chapter 25, the Tribunal held that the respondents were entitled to the benefit of the cited notifications.

3. Allegations of Mis-Declaration and Imposition of Penalties:
The revenue alleged that the respondents mis-declared the imported cement to avail the exemption benefits. However, the Tribunal found that the respondents had consistently declared the alumina content and provided all necessary documents, including certificates of quality. The Tribunal ruled that merely claiming a wrong classification does not amount to mis-declaration. Consequently, the Tribunal set aside the penalties and confiscation orders, stating there was no mis-declaration and the respondents were entitled to the exemption notification.

Conclusion:
The Tribunal upheld the impugned order, confirming the classification of the imported aluminous cement under CTH 25233000 and entitling the respondents to the benefit of Notification No. 21/2002-Cus and subsequent notifications. The appeals filed by the Revenue were dismissed.