1988 (2) TMI 206 - AT - Customs

Summary

Issues:
Classification of imported Myristic Acid under Customs Tariff Act, 1975 - Refund of additional duty paid - Application of Notification No. 48/79 - Benefit of Notification No. 213-Customs, dated 24-9-1981 - Assessment under Heading 15.08/13 or 29.01/45(1) of the C.T.A. 1975.

Classification of Imported Myristic Acid:
The case involved the classification of imported Myristic Acid by the respondent for a refund claim of additional duty paid. The respondent claimed that Myristic Acid should be classified under Heading 15.08/13 of the C.E.T. and exempted from additional duty under Customs Notification No. 48/79. The Assistant Collector initially rejected the claim, but the Collector of Customs (Appeals) overturned this decision, stating that Myristic Acid should be assessed under Heading 15.08/13 and was entitled to a refund. The department appealed this decision, arguing that Fatty Acid should be classified based on purity, with purity above 90% falling under Chapter 29. The respondent countered, citing legal precedents and arguing that classification should be based on specific descriptions, favoring Chapter 15. The Tribunal held that the Assistant Collector's decision based on purity criteria conflicted with legal precedents and ruled in favor of the respondent, classifying Myristic Acid under Chapter 15.

Application of Notifications:
The Collector of Customs (Appeals) also considered the application of Notification No. 48/79 and Notification No. 213-Customs, dated 24-9-1981. Despite the technical literature confirming Myristic Acid as Fatty Acid and assessable under Heading 15.08/13, the Customs House had classified it under Heading 29.01/45(1) and charged a 60% ad valorem duty. The Collector noted the arbitrary assessment by the Customs House and granted the benefit of both notifications to the respondent. The Tribunal upheld this decision, emphasizing that the appellants did not challenge this additional reason during the appeal, leading to the dismissal of the appeal.

Conclusion:
The Tribunal rejected the department's appeal, finding it devoid of merit. It highlighted the incorrect classification by the Assistant Collector based solely on purity criteria, contrary to legal precedents. The classification of Myristic Acid under Chapter 15 was upheld, and the benefit of relevant customs notifications was granted to the respondent. The Tribunal emphasized the importance of accurate classification based on legal provisions and upheld the decision of the Collector of Customs (Appeals) in favor of the respondent.