2024 (1) TMI 965 - AT - Customs

Classification of imported goods - whether goods imported by the appellant is classifiable as natural Calcite Powder under CTH 25309030 under the notification No. 46/2011-Cus dated 01.06.2011 as claimed by the appellant or the goods is precipitated Calcium Carbonate Powder under CTH 28365000 with denial of notification No. 46/2011-CUS as contended by the revenue? The CRCL, Kandla has tested the goods and provided the report but admittedly the said laboratory did not have the facility for testing the goods in question. HELD THAT - It is admitted that at the relevant time when the CRCL, Kandla has under taken the testing of imported goods in question i.e. Calcite Powder the said laboratory did not have the facilities to test such product. This Tribunal considering the very same fact came to conclusion that, when a particular laboratory does not have the testing facilities, the test report of the said laboratory without having facilities of testing the goods cannot be relied upon to decide the classification of the goods. In the relevant judgment in the case of GAURAV LUBRICANTS INDUSTRIES PRIVATE LIMITED VERSUS C.C. -AHMEDABAD 2023 (11) TMI 1209 - CESTAT AHMEDABAD where it was held that Since the test report of CRCL Vadodara/Delhi cannot be accepted the declaration made by the appellant in respect of nature of goods, classification and also valuation are found to be absolutely correct. In view of the above decision, it can seen that it was consistently held by this Tribunal that if a particular laboratory did not have the facility to test a product and if such laboratory test the same product the test report of such product cannot be relied upon for deciding the classification. Accordingly in the present case also being the same fact involved that the Kandla, CRCL did not have the facility to test calcite powder, the entire case based on the test report of CRCL, Kandla will not sustain. The impugned order is set aside - Appeal is allowed.

Summary

Issues Involved:
1. Classification of imported goods as natural Calcite Powder or precipitated Calcium Carbonate Powder.
2. Validity of the test report from CRCL, Kandla.
3. Compliance with High Court orders regarding the release of goods.

Summary:

1. Classification of Imported Goods:
The primary issue in this case is whether the imported goods should be classified as natural Calcite Powder under CTH 25309030, as claimed by the appellant, or as precipitated Calcium Carbonate Powder under CTH 28365000, with the denial of notification No. 46/2011-CUS, as contended by the revenue.

2. Validity of the Test Report from CRCL, Kandla:
The appellant argued that the CRCL, Kandla laboratory did not have the necessary facilities to test the goods in question, as per various board circulars and judgments. The appellant cited several judgments, including Asian Granito Vs. CC Mundra, Chem Plast Vs. Commissioner of Customs, and others, to support their claim that the issue is no longer res-integra. The tribunal noted that it is admitted that at the relevant time, CRCL, Kandla did not have the facilities to test Calcite Powder. The tribunal referred to previous judgments, including Gaurav Lubricants Industries Pvt. Ltd, which emphasized that test reports from laboratories lacking the necessary facilities cannot be relied upon for classification decisions.

3. Compliance with High Court Orders:
The appellant also submitted that the department violated the High Court's direction by not releasing the goods despite a specific order. The tribunal acknowledged the High Court's order, which directed the release of goods upon furnishing a bank guarantee. The tribunal noted that while it cannot give a direction regarding the High Court's order, the appellant is entitled to the release of goods based on the merits of the case.

Conclusion:
The tribunal concluded that since the CRCL, Kandla did not have the facilities to test Calcite Powder, the test report cannot be accepted. Consequently, the appellant's declaration regarding the nature, classification, and valuation of the goods was found to be correct. The impugned orders were set aside, and the appeals were allowed with consequential relief.