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2024 (1) TMI 349 - AT - CustomsClassification of imported goods - Fish Oil in the form of capsules - classifiable under CTH 15042020 as claimed by the appellant or under CTH 21069099 as confirmed by the Commissioner (Appeals)? - refund of excess duty paid - HELD THAT - The Commissioner (Appeals) has referred to the NOC issued by Food Safety and Standards Authority of India. A decision on classification cannot be made merely because the goods are mentioned by the said Authority as Food Supplement in these documents. No discussion made by the Commissioner (Appeals) as to the classification with regard to the tariff or the ingredients of the goods imported. Though the goods are claimed by the appellant to be fish oil , they are imported in the form of capsules. It requires to be examined whether there are any other ingredients other than Fish Lipid Oil and whether these are chemically modified or not. The appellant has not been able to place any evidence to substantiate the ingredients of the Fish Lipid Oil Capsules imported by them. There has been no dispute on classification by the department for subsequent consignments in regard to assessment and classifying the goods under CTH 15042020 has been accepted by the Department. Taking note of these submissions, the matter has to be remanded to the adjudicating authority to consider the issue of classification after giving opportunity to the appellant to produce documents / evidence, if necessary. It also requires to be stated that the Chapter Heading 21069099 refers to 'Other which a residual entry of Chapter Heading 2106 which includes 'Food Preparations not elsewhere specified or included'. The matter is remanded to the Commissioner (Appeals) to reconsider the issue of classification and the eligibility of refund - appeal allowed by way of remand.
Issues Involved:
1. Whether the appeal filed by the appellant is time-barred. 2. Whether the appellant can seek a change in classification of the goods in the appeal stage. 3. The correct classification of the imported goods under CTH 15042020 or CTH 21069099. 4. Compliance with the EXIM Policy conditions for import of Fish Oil. Summary: I. The Appeal filed is not time-barred: The appellant argued that the appeal filed on 21.09.2020 is within the limitation period considering the extension granted by the Hon'ble Supreme Court in Suo Motu Writ Petition (Civil) No(s). 3/2020 dated 10.01.2022, which excluded the period from 15.03.2020 to 28.02.2022 due to the COVID-19 pandemic. The Tribunal held that the rejection of the appeal as time-barred by the Commissioner (Appeals) is unsustainable. II. The Appellant can seek for change in classification in Appeal: The appellant contended that an appeal against the Bills of Entry for a change of classification is permissible as Bills of Entry are considered assessment orders, which are appealable. The Tribunal agreed, citing precedent that there is no estoppel in law against a party in taxation matters, allowing the appellant to claim the correct classification. III. The imports of the Appellant are classifiable under CTH 1504 20 20 as "Fish Lipid Oil": The appellant argued that the product, made of natural fish oil encapsulated in a gelatin shell, should be classified under CTH 1504 20 20 as "Fish Lipid Oil" and not under CTH 2106 90 99 as "Food preparation not elsewhere specified." The Tribunal noted the need to examine the product's ingredients and whether they are chemically modified. The appellant was allowed to provide further evidence to substantiate the correct classification. IV. The reasoning recorded by the Commissioner (Appeals) for rejecting the change in classification are not sustainable: The Tribunal found that the Commissioner (Appeals) did not adequately discuss the classification based on tariff or the ingredients of the goods. The Tribunal emphasized the need to examine the product's composition and whether it meets the EXIM Policy conditions for import of Fish Oil. The Tribunal directed the Commissioner (Appeals) to consider the lab report submitted by the appellant and reassess the classification and eligibility for a refund. Conclusion: The Tribunal set aside the impugned order and remanded the matter to the Commissioner (Appeals) to reconsider the classification issue and the eligibility for a refund, allowing the appellant to present additional evidence. The appeals were allowed by remand.
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