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2023 (7) TMI 837 - AT - CustomsExemption on imported Life Rafts under N/N. 21/2002-Cus dated 01.03.2002 - allegation of the Revenue is that the documents enclosed with the Bill of Entry have not indicated the Life Rafts as inflatable that the goods lose their identity once out-of-charge of Customs is granted and that there are different kinds of Life Rafts such as Tubular Life Rafts, Polyester Life Rafts, etc., and all the Life Rafts are not inflatable. HELD THAT - The imported goods are inflatable Life Rafts only and so, eligible for the benefit of the Notification No. 21/2002-Cus dated 01.03.2002. For committing an inadvertent mistake by the clearing agent in classifying the imported goods under CTH 8907 9000 instead of CTH 8907 1000 denial of exemption benefit of the notification is not justified. Other than alleging as to wrong classification apparently declared by the appellant itself, the respondent has not adduced any evidence, to suggest that what was imported by the appellant was not inflatable Raft. The impugned order dated 30.04.2013 is set aside - appeal allowed.
Issues Involved:
The case involves challenging an order confirming duty demand, interest, and penalty reduction on the import of Life Rafts classified under CTH 8907 9000, claiming duty exemption under Customs Notification No. 21/2002-Cus. Issue 1: Classification and Duty Exemption The appellant imported Life Rafts classified under CTH 8907 9000, claiming duty exemption under Customs Notification No. 21/2002-Cus. The post-clearance audit revealed that the goods were not eligible for the claimed exemption, leading to re-assessment and duty demand of Rs.1,38,744/-, interest, and a penalty. The lower adjudicating authority denied the exemption, which was upheld by the Commissioner of Customs and Central Excise (Appeals), albeit with a reduced penalty. The appellant contended that the goods were mistakenly classified under CTH 8907 9000 instead of CTH 8907 1000 due to an error by the Customs broker. Issue 2: Evidence and Justification for Exemption The appellant provided evidence from the overseas supplier, including invoices and maintenance manuals, indicating that the imported goods were inflatable Life Rafts, eligible for the duty exemption. The appellant argued that despite the evidence supporting the classification as inflatable Life Rafts, the lower authorities did not consider it. The appellant relied on a Bombay High Court decision permitting correction of inadvertent errors in self-assessed Bill of Entry. Issue 3: Interpretation of Classification and Exemption The Customs authorities issued a Show Cause Notice based on public notices emphasizing accurate CTH description due to RMS facilitation. The authorities contended that the appellant self-assessed the goods under CTH 8907 9000, making them ineligible for the duty exemption. The appellant argued that the imported goods were inflatable Life Rafts, supported by documentation, and should be classified under CTH 8907 1000 for exemption eligibility. Judgment: The Tribunal analyzed the evidence presented by both parties and found that the imported goods were indeed inflatable Life Rafts, eligible for the duty exemption under Customs Notification No. 21/2002-Cus. The appellant's classification under CTH 8907 9000 was deemed an inadvertent mistake, not justifying the denial of the exemption benefit. The Tribunal set aside the previous order, allowing the appeal with consequential relief, if any, as per law.
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