1987 (2) TMI 216 - AT - Customs

Summary

Issues:
1. Transfer of revision application to the Tribunal for appeal against penalty under Section 116 of the Customs Act, 1962.
2. Classification of bulgar wheat under the Customs Tariff Act, 1975.
3. Dispute over duty liability on bulgar wheat.
4. Consideration of previous Tribunal rulings on the classification of bulgar wheat.
5. Examination of the manufacturing process of bulgar wheat for classification purposes.
6. Reliability of the communication from the Ministry of Human Resource Development in determining duty liability.
7. Sustainment of the penalty order based on short landing of bulgar wheat.

Analysis:
1. The case involved the transfer of a revision application to the Tribunal for appeal against a penalty imposed under Section 116 of the Customs Act, 1962, concerning the short landing of bulgar wheat by the appellant's vessel in September 1978.

2. The appellant argued that bulgar wheat should be classified under Tariff Item 10.01/07 of the Customs Tariff Act, 1975, as a cereal exempt from duty, contrary to the authorities' classification under Tariff Item 20.01/07, which is dutiable. The appellant presented a communication from the Ministry of Human Resource Development to support their claim.

3. The Departmental Representative contended that previous Tribunal rulings had established bulgar wheat as a dutiable item, citing specific cases where the classification was upheld. The quantity of short-landed bulgar wheat was not disputed, leading to the imposition of the penalty.

4. The Tribunal considered the manufacturing process of bulgar wheat, noting that it involved various processes resulting in a food preparation not elsewhere specified or included under Tariff Item 21.01/07. The communication from the Ministry was deemed inconclusive and not supported by sufficient data.

5. Relying on the earlier Tribunal rulings and the admitted short landing of bulgar wheat, the Tribunal upheld the penalty order, finding it legally sustainable. The appeal was dismissed based on the classification of bulgar wheat and the lack of substantial evidence to support a different classification.