2024 (10) TMI 1355 - AT - Customs

Classification of imported goods- Pran Lassi Drink (Yoghurt Flavoured) - to be classified under the CTH 22029030 or under CTH 04039090? - HELD THAT - From the letter issued by the supplier, it is evident that the said goods imported by the appellant is internationally classified under the H.S. Code 0403.9090. It is observed that there is no finding in the impugned order against this submission made by the appellant. Accordingly, there are no reason to disagree with the classification adopted internationally for the said goods. The classification of the said goods is no more res integra as the Hon'ble Madras High Court has examined the issue in the case of M/S. PARLE AGRO PVT. LTD., REPRESENTED BY ITS MANAGER, G. MADHAVAN VERSUS UNION OF INDIA, COMMISSIONER OF COMMERCIAL TAXES, GST COUNCIL 2023 (11) TMI 601 - MADRAS HIGH COURT wherein it has been held that the appropriate classification of the goods would be under the Chapter Heading 04 and not under the Chapter Heading 22. The Hon ble Madras High Court has held that the goods, namely, Flavoured Milk do not fall under Chapter Heading 22 of the Customs Tariff Act, 1975 but would fall under the Chapter Heading 04. Therefore, relying on the decision of the Hon'ble Madras High Court, it is held that the appropriate classification of the goods namely, Pran Lassi Drink imported by the appellant is under the Chapter Heading 04 and not under Chapter Heading 22. Thus, the demand of customs duty along with interest and penalty confirmed in the impugned order, by classifying the said goods under the Chapter Heading 22 is not sustainable and accordingly, the same is set aside. The impugned order is set aside - appeal allowed.

Issues: Classification of imported goods under CTH 04039090 or CTH 22029030; Consideration of supplier's certificate; Applicability of Hon'ble Madras High Court judgment.

Analysis:
1. The appeal was filed against the Order-in-Appeal upholding the classification of 'Pran Lassi Drink' under CTH 22029030, contrary to the appellant's claim of CTH 04039090.
2. The appellant imported the goods, filed Bill of Entry under CTH 04039090 with 'NIL' duty rate, but later received a Show Cause Notice proposing reclassification under CTH 22029030 with CVD @12.5%.
3. The appellant argued that a certificate from the supplier supported CTH 04039090 classification, which was disregarded by the adjudicating authority.
4. The appellant cited a judgment by the Hon'ble Madras High Court in a similar case, holding that 'Flavoured Milk' falls under Chapter Heading 04, not 22.
5. The Revenue representative acknowledged the Madras High Court's decision favoring the appellant's classification under Chapter Heading 04.
6. The Tribunal considered the issue of classification under CTH 04039090 or CTH 22029030 for 'Pran Lassi Drink' imported by the appellant.
7. The Tribunal noted the supplier's certificate supporting CTH 04039090 classification and highlighted the lack of findings against this submission in the impugned order.
8. Referring to the Madras High Court judgment, the Tribunal concluded that 'Pran Lassi Drink' should be classified under Chapter Heading 04, not 22, setting aside the demand of customs duty, interest, and penalty imposed under Chapter Heading 22.
9. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant based on the classification under Chapter Heading 04.

This detailed analysis covers the issues of classification, consideration of evidence, and the impact of relevant judicial precedents on the final decision of the Tribunal.

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