2000 (7) TMI 318 - AT - Customs

Summary

Issues:
1. Refund claim for dead chicks rejected by Assistant Commissioner.
2. Assessment of duty under the wrong tariff heading.
3. Determination of the point at which the chicks died.
4. Classification of the chicks under the correct heading.
5. Valuation and duty payable on the dead chicks.

Refund Claim Rejection:
The importer applied for a refund of the dead chicks, but the Assistant Commissioner rejected the claim citing that the Customs examination report did not certify any damage, loss, or death of birds. The Assistant Commissioner found that the damage to the imported goods had not been shown as not being due to any wilful act or negligence on the part of the importer. It was concluded that sufficient care was not taken in transporting the chicks, and the provisions of Section 22 of the Act did not apply. Additionally, the goods were neither lost nor abandoned before clearance, excluding the applicability of Section 23.

Assessment of Duty:
The Commissioner (Appeals) found that the dead chicks had been assessed to duty under the wrong tariff heading and should have been assessed under a different heading meant for animal products not fit for human consumption. This led to an appeal challenging the assessment under the incorrect tariff heading.

Determination of the Point of Death:
The exact point at which the chicks died was not established, but it was inferred that they died before clearance from Customs based on the certificates provided by the Animal Quarantine and Certification Service and the findings of the Deputy Superintendent. The classification under the correct heading was crucial in determining the condition of the goods at the time of importation.

Classification of Chicks:
The Commissioner (Appeals) concluded that the chicks were dead at the time of importation, leading to their classification under a specific heading for dead animals. The classification was based on the condition of the goods at the time of importation, as per the relevant HSN Explanatory Notes.

Valuation and Duty Payable:
Since the dead chicks were not deliberately imported for use and were destroyed due to posing a health hazard, they were deemed to have no value, and no duty was payable on them. Consequently, the appeal was allowed on this ground, directing the refund of the duty paid on the dead birds to the appellant.