2025 (4) TMI 832 - AT - Customs

Classification of imported goods - L-Glutamine with berries - to be classified under CTH 2922 4990 or under CTH 2106 9099? - HELD THAT - In the impugned order the learned Commissioner (Appeals) totally relied upon the source material contained in Wikipedia without discussing other materials as alleged in the show-cause notice and discussed by the adjudicating authority. Recently the Hon ble Supreme Court in the case of Hewlett Packard India Sales Pvt. Ltd. 2023 (1) TMI 700 - SUPREME COURT recording a note of caution on reliance of materials in Wikipedia observed that despite being a treasure trove of knowledge are based on a crowd-sourced and user-generated editing model that is not completely dependable in terms of academic veracity and can promote misleading information as has been noted by this court on previous occasions also. No doubt Wikipedia can be considered as one of the source material for deciding the classification of the impugned product but it cannot be sole basis for arriving at the correct classification of the impugned goods that too when it is not alleged in the notice. In these premises the learned Commissioner (Appeals) is directed to decide the issue afresh on the basis of materials as alleged in the show-cause notice and discussed by the adjudicating authority in classifying the product. Appeal allowed by way of remand.

ISSUES PRESENTED and CONSIDERED

The primary issue considered in this appeal was the correct classification of the imported product "L-Glutamine with berries." The appellant contended that the product should be classified under CTH 2922 4990, while the Department argued for classification under CTH 2106 9099. The classification dispute led to a demand for differential duty, interest, and penalty. The appeal also addressed the appropriateness of relying on Wikipedia as a source for legal determinations, particularly in the context of product classification.

ISSUE-WISE DETAILED ANALYSIS

Classification of "L-Glutamine with berries"

Relevant legal framework and precedents: The classification of imported goods under the Customs Tariff Act is crucial for determining the applicable duty rates. The appellant's classification under CTH 2922 4990 was challenged by the Department, which proposed CTH 2106 9099 based on an audit observation. The adjudicating authority supported the Department's classification, which was upheld by the Commissioner (Appeals). However, the appellant challenged the reliance on Wikipedia by the Commissioner (Appeals) for classification decisions, citing precedents where the Supreme Court cautioned against such reliance.

Court's interpretation and reasoning: The Tribunal noted that the Commissioner (Appeals) had relied heavily on Wikipedia to justify the classification under CTH 2106 9099. The Tribunal referenced the Supreme Court's cautionary stance on using Wikipedia as a primary source for legal determinations, emphasizing that while Wikipedia can be a useful resource, it should not be the sole basis for classification decisions due to its crowd-sourced nature, which may lack academic rigor.

Key evidence and findings: The Tribunal observed that the Commissioner (Appeals) did not adequately consider the materials and arguments presented in the show-cause notice and the detailed analysis by the adjudicating authority. The reliance on Wikipedia without addressing these materials was deemed insufficient for a sound legal determination.

Application of law to facts: The Tribunal applied the legal principle that classification decisions should be based on reliable and comprehensive evidence rather than solely on user-generated content from platforms like Wikipedia. The Tribunal directed that the classification issue be reconsidered based on the evidence and arguments initially presented in the show-cause notice and adjudicating authority's analysis.

Treatment of competing arguments: The Tribunal acknowledged the appellant's argument against the reliance on Wikipedia and the Department's position that while Wikipedia could be referenced, it should not be the sole basis for decision-making. The Tribunal agreed with the appellant's contention, leading to the decision to remand the matter for reconsideration.

Conclusions: The Tribunal concluded that the classification of "L-Glutamine with berries" needed to be reassessed by the Commissioner (Appeals) without undue reliance on Wikipedia and with due consideration of the materials and arguments presented in the original proceedings.

SIGNIFICANT HOLDINGS

The Tribunal emphasized the principle that while online sources like Wikipedia can be consulted, they should not form the sole basis for legal determinations due to their potential unreliability. The Tribunal directed the Commissioner (Appeals) to re-evaluate the classification issue based on the evidence and arguments in the show-cause notice and adjudicating authority's analysis, rather than relying primarily on Wikipedia.

The Tribunal's final determination was to allow the appeal by way of remand, instructing the Commissioner (Appeals) to decide the case within three months and to provide a reasonable opportunity for a hearing to the appellant.

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