2024 (11) TMI 1243 - AT - Customs

Classification of BAYLAN branded water meters - Tariff Item No. 9026 10 10 subject to nil rate of Customs duty v/s Tariff Item No. 9028 20 00 subject to pay Customs duty at the rate of 7.5% - HELD THAT - On going through the parameters set by the Indian Standards IS 2401 1973 and ISO 4064 we find that all these parameters are required to be followed for import of water meters . From the brochure submitted by the Appellant, it is clearly seen that the equipment pertains to water meters only. When the factual details and the documentary evidence produced very clearly point out that the goods are water meters only, we do not see the reason as to why the lower authorities have ignored these documentary evidence and taken the view that the goods would be classifiable under the heading 9028. Therefore, we set aside the impugned order and allow the appeal on merits. The Appellant would be eligible for consequential relief, if any, as per law.

Summary

Issues: Classification of imported goods under Customs Tariff Act, 1975

Analysis:
The case involved the classification of imported 'BAYLAN' branded water meters under the Customs Tariff Act, 1975. The appellant had initially cleared the goods under Tariff Item No. 9026 10 10, which attracted a 'nil' rate of Customs duty. Subsequently, the Department issued a Show Cause Notice proposing to classify the goods under Tariff Item No. 9028 20 00, which would require the appellant to pay Customs duty at a rate of 7.5%.

The adjudicating authority confirmed the demand, along with interest and penalty. The Commissioner (Appeals) upheld the decision, leading the appellant to appeal before the Tribunal. The appellant argued that the Commissioner had not considered the brochures and documentary evidence provided, relying instead on a previous case law. The appellant contended that the goods should be classified under Tariff Item No. 9026, not 9028.

The Tribunal examined the evidence, including the brochures, Indian Standards, and the characteristics of the imported goods. It was noted that the parameters set by Indian Standards for water meters were met by the imported product. The Tribunal observed that the equipment clearly pertained to water meters based on the brochure submitted by the appellant.

Ultimately, the Tribunal found that the lower authorities had ignored the documentary evidence indicating that the goods were indeed water meters. As a result, the Tribunal set aside the impugned order and allowed the appeal on merits. The appellant was deemed eligible for any consequential relief as per the law.