2023 (10) TMI 608 - AT - Customs

Classification of imported items - Golden Star Chafing Dish Fuel Wick - Liquid Chafing Fuel wick Plant - to be classified under CTH 36061000 or under CTH 84198190? - absolute confiscation - penalty - Waiver of demurrage charge - HELD THAT - Regarding classification of goods under CTH 36061000 and on claiming the benefit of Exemption Notification No. 26 of 2000, as per HSN 3606 10 00, Liquid or liquefied-gas fuels in containers of a kind used for filling or refilling cigarette or similar lighters and of a capacity not exceeding 300 cm3 will fall under said category. Moreover, as evident from the documents relied by appellant, same goods are traded by classifying the same under CTH 3606 1000 and allowed to clear under CTH 36061000 through Nhava Sheva port and Chennai port. On the other hand, while rejecting the above said classification, department considered the proper adjustment as falling under Chapter 8419 which lies to plant and machinery. Even as per the impugned order, Appellate Authority held that impugned goods cannot be considered as a machinery or as a plant. There is no specific Tariff item for the impugned goods, which is basically and equipment incorporating a fuel and a wick for heating/warming food. Hence goods are classifiable under CTH 36061000 and appellant is entitled for the benefit of Exemption Notification No. 26 of 2000 as claimed. Confiscation of goods - HELD THAT - Regarding violation of the provisions of Manufacture, Storage and Import of Hazardous Chemical Rules, 1989, said Rules would apply only in cases where chemicals listed in the Schedules of above Rules are imported and not when imported as a finished product Chafing Dish Fuel Wick . Moreover, fuel in the imported containers is less than 300 Cm3 and as per the definition it is clear that if liquid or liquefied-gas fuels in containers of a kind used for filling or refilling cigarette or similar lighters of a capacity not exceeding 300 cm3, it is to be treated as different category. Thus confiscation of goods on the alleged violation of the provisions of Manufacture, Storage and Import of Hazardous Chemical Rules, 1989 is unsustainable. Waiver of demurrage charge - HELD THAT - There is no finding in impugned order. However considering the order of absolute confiscation, appellant if approach respondent for issuing detention certificate, same will be considered in accordance with law. Classification of goods under Tariff item 8419 8190 and penalty imposed on appellant are set aside - Appeal allowed.

Summary

Issues involved:
The classification of imported items under CTH 36061000 and CTH 84198190, compliance with Explosive Rules, 2008, and alleged violations of Hazardous Chemical Rules, 1989 and Plastic Waste Management (Amendment) Rules, 2022.

Classification of Imported Items (CTH 36061000 vs. CTH 84198190):
The appellant imported 'Golden Star Chafing Dish Fuel Wick' and 'Liquid Chafing Fuel wick Plant' under CTH 36061000 for warming food. The goods were examined and found not to be explosive. However, the liquid in the container was listed as a hazardous chemical. The Adjudication Authority reclassified the goods under CTH 84198190, leading to confiscation and penalty. The Appellate Authority upheld this reclassification, considering the goods as equipment falling under Chapter 8419. The appellant contended that the goods should be classified under CTH 36061000 as they are not machinery or plant but items for heating/warming food. The Tribunal agreed, setting aside the penalty and reclassification under CTH 84198190.

Alleged Violations of Hazardous Chemical Rules, 1989 and Plastic Waste Management (Amendment) Rules, 2022:
The appellant refuted allegations of violating the Hazardous Chemical Rules, 1989, stating that the rules apply to chemicals, not finished products like 'Chafing Dish Fuel Wick.' They provided documents showing compliance with the Plastic Waste Management (Amendment) Rules, 2022. The Department's objections based on the fuel used in the product were deemed unsustainable. The Tribunal ruled that restrictions on chemicals do not apply to finished products, and the Department cannot block clearance based on the fuel used. The confiscation of goods due to alleged violations of the Hazardous Chemical Rules, 1989 was deemed unjustified.

Prayer for Waiver of Demurrage Charge:
The impugned order did not address the appellant's request for a waiver of demurrage charges. However, in light of the appeal's success, the appellant was advised to approach the respondent for a detention certificate, which would be considered in accordance with the law.