2023 (10) TMI 965 - HC - Customs

Classification of export goods - Duty Drawback - Upgraded Beneficiated IImenite - to be classified under Customs Tariff Item No.28230090 under the Customs Tariff Act or under classification Customs Tariff Item No.28230090? The specific contention of the petitioner is that it is not Titanium Ores and Concentrates in its natural form, after manufacturing process it is a value added product as Upgraded Beneficiated Ilmenite . HELD THAT - The respondents had issued periodical 16 show cause notices for the subsequent exports. After the Tribunal s order the said 16 show cause notices were considered by the respondents in Order-in-Original No.38/2023, wherein it is held that the Tribunal had classified the product under 28230090, therefore on review, the same was accepted by the Commissioner of Customs followed by the Chief Commissioner of Customs, Trichy vide letter F.No.CCO/LGL/MISC/ 211/2023-LGL dated 02.09.2023. And based on the Principles of Judicial Discipline the respondents have dropped the proceedings initiated in the said 16 show cause notices. The product Upgraded Beneficiated Ilmenite will fall under 28230090 under the Customs of Tariff Act. Consequently the petitioner is entitled to drawback and the same shall be granted to the petitioner - Petition allowed.

Summary

Issues involved:
The classification of the product "Upgraded Beneficiated Ilmenite" under the Customs Tariff Act and the entitlement to duty drawback scheme.

Classification Issue:
The petitioner, a company engaged in manufacturing chemicals, imports raw materials through Tuticorin Port and exports the finished product. The Customs Department classified the product under Tariff Item 26140020, whereas the petitioner argued it should be under 28230090. Various orders and appeals were made, leading to conflicting decisions. The Tribunal eventually ruled in favor of the petitioner, classifying the product under 28230090, which was accepted by the Commissioner and Chief Commissioner of Customs. The High Court confirmed the Tribunal's order, quashing the impugned order and granting the petitioner entitlement to drawback under 28230090.

Duty Drawback Issue:
The Assistant Commissioner of Customs initially denied duty drawback to the petitioner, leading to appeals and revisions. The Government of India set aside the appellate authority's order and denied duty drawback under 26140020. However, after the Tribunal's decision to classify the product under 28230090, the respondents dropped the proceedings initiated in subsequent show cause notices and accepted the classification. As a result, the petitioner was deemed entitled to duty drawback under 28230090. The High Court allowed the writ petition, confirming the Tribunal's order and directing the grant of duty drawback to the petitioner.