2023 (10) TMI 1004 - AT - Customs

Classification of imported goods - Joss Powder for usage in their finished goods known as Jigged Powder - to be under Chapter sub-heading 1211 9029 as against the Appellant s claim that the product was classifiable under 4401 30 00 or not - HELD THAT - On going through the Chapter Notes of Chapter 12, it is seen that Heading 12.11 applies to the plants or parts thereof basil, borage, ginseng, hyssop, liquorice, all species of mint, rosemary, rue, sage and wormwood. The Test Report obtained from the CRL by the Department does not specify that the goods in question fall under any of these categories. There are no reason for the Department to suddenly change the classification from CET 44013000 to CET 12119029 when several consignments have been imported through Kolkata (Port) as well as Haldia (Port) during the period 2003 to 2004 were allowed to be classified under CET 44013000. Even the provisionally, assessed Bills of Entry has been finalized by classifying the goods under CET 44013000. There are no proper evidence being brought in by the Customs Department to adopt new classification under CET 12119029, particularly when even the Test Reports obtained from CRL do not support the view of the Department - appeal allowed.

Summary

Issues involved:
Classification of imported goods under Chapter sub-heading 1211 9029 instead of 44013000, approval for changing classification, proper evidence for new classification.

Classification Issue:
The Appellant imported Joss Powder for usage in their finished goods known as Jigged Powder, classifying them under chapter sub-heading 44013000 attracting basic Customs Duty @5%. Customs Department later classified the product under Chapter sub-heading 1211 9029, leading to Duty Demand, interest, and penalties. Appellant contended that the goods clearly fall under 44013000, supported by RTI response and Test Reports indicating no medicinal properties. They argued that the unilateral classification change lacked prior approval as per Circular dated 11/06/1988. Despite finalizing provisionally assessed imports under 44013000, the Department did not appeal, indicating acceptance of the classification.

Judgment on Classification Issue:
The Tribunal noted the RTI response confirming classification under 44013000 and lack of proper approval for the unilateral change to 1211 9029. Chapter Notes of Chapter 12 did not align with the goods in question, as per Test Reports. Given the absence of evidence supporting the new classification and the history of imports classified under 44013000, the Tribunal set aside the impugned Order, allowing the Appeals with consequential relief.