2023 (8) TMI 1242 - AT - Customs

Recovery of amount claimed as exemption in terms of N/N. 12/2012-CE dated 17th March 2012 - import of iron ore fines - appropriateness of classification against tariff item 2601 11 50 of schedule to Central Excise Tariff Act, 1985 for assessment to additional duty of customs under section 3(1) of Customs Tariff Act, 1975 on the imports - HELD THAT - The Tribunal had settled the classification on the facts and physical properties peculiar to iron ore fines imported by the appellant therein and which is identical to the goods impugned in this appeal. Any bolstering that the adjudicating authority considered necessary to support his finding on facts were not only not directly in relation to the controversy over the rival classifications but also not pertaining to imported goods as presented for assessment. Moreover, it is seen from the order of the Tribunal that relevance of these cases laws had not been pressed in arguments countering the challenge mounted in M/S AMBA RIVER COKE LTD. VERSUS PRINCIPAL COMMISSIONER OF CUSTOMS (PREVENTIVE) , MUMBAI 2022 (6) TMI 217 - CESTAT MUMBAI ; had those been urged but not considered, appropriate recourse should have been had to section 129B(2) of Customs Act, 1962. In the absence of such, the plea of non-consideration of judicial decisions as justification at this stage for discard of the decision of the Tribunal in re Amba River Coke Ltd is not tenable. Revenue has not been able to substantiate its plea for urging a contrary stand on classification of the impugned goods or to entertain any impediment in following judicial precedent that has determined classification of goods impugned in the appeal. With the classification, as originally declared, being affirmed, the proceedings against the individual also does not sustain - Appeal allowed.

Summary

Issues Involved:
1. Appropriateness of classification of imported goods.
2. Denial of exemption under the notification.
3. Judicial consistency and relevance of previous Tribunal decisions.
4. Consideration of expert opinions and additional judicial decisions.

Summary:

1. Appropriateness of Classification of Imported Goods:
The core issue in these appeals by M/s JSW Steel Ltd and Shri Shashikant Sharma pertains to the classification of imported 'iron ore fines' against tariff item 2601 11 50 of the Central Excise Tariff Act, 1985, for the assessment of 'additional duty of customs' under section 3(1) of the Customs Tariff Act, 1975. The appellant declared the goods under tariff item 2601 11 31, claiming exemption from 'additional duty of customs' per notification no. 12/2012-CE dated 17th March 2012. The Principal Commissioner of Customs (Preventive) denied this exemption, classifying the goods as 'iron ore concentrate' under tariff item 2601 11 50. The Tribunal noted that the dispute hinges on whether the goods should be classified as 'ores' (benefiting from nil duty) or 'concentrates' (subject to duty).

2. Denial of Exemption Under the Notification:
The adjudicating authority denied the exemption based on a restrictive interpretation of 'ore' and reclassified the goods as 'iron ore concentrate'. The Tribunal observed that the notification's language does not explicitly exclude 'concentrates' from the exemption. The Tribunal also referenced the Harmonized System of Nomenclature (HSN) and concluded that the processes the imported goods underwent (crushing and screening) did not qualify as special treatments that would convert 'ore' into 'concentrate.'

3. Judicial Consistency and Relevance of Previous Tribunal Decisions:
The Tribunal emphasized judicial consistency, noting that a similar dispute involving M/s Amba River Coke Ltd, a sister-concern, had been decided in favor of the declared classification in a previous order. The Revenue's appeal against this decision is pending before the Supreme Court. The Tribunal found it inappropriate to deviate from its earlier decision, adhering to the principle of judicial consistency.

4. Consideration of Expert Opinions and Additional Judicial Decisions:
The Tribunal addressed the Revenue's argument that expert opinions and prior judicial decisions were not adequately considered. It found that the expert opinions did not conclusively prove that the imported goods were 'concentrates.' The Tribunal also noted that the cited judicial decisions did not directly pertain to the classification dispute at hand. The Tribunal reaffirmed its stance from the Amba River Coke Ltd decision, emphasizing that the processes the imported goods underwent did not amount to the special treatments required to classify them as 'concentrates.'

Conclusion:
The Tribunal set aside the impugned order, allowing the appeals and affirming the original classification of the goods as declared by the appellant, thereby granting the claimed exemption. The proceedings against the individual appellant were also dismissed. The order was pronounced in the open court on 22/08/2023.