2015 (4) TMI 848 - AT - Customs

Waiver of pre deposit - Classification of goods - paper sizing chemicals - Revenue says that the goods imported were wax only - Classification under CTH 2914 1990 or CTH 3404 9090 - Held that - it is proper that the appeals should be disposed expeditiously waiving predeposit because of diversity in the classification in different customs jurisdiction. Accordingly, there shall be waiver of predeposit in these appeals during pendency of the appeals and both sides take notice of hearing in view of the huge demand raised due to change of classification and either side may be prejudiced if the appeals are kept pending. - Stay granted.

Summary

Issues: Classification of goods under CTH 2914 1990 or CTH 3404 9090, waiver of predeposit during pendency of appeals

In this judgment by the Appellate Tribunal CESTAT CHENNAI, the issue revolved around the correct classification of Alkyl Ketene Dimer (AKD wax) imported for the manufacture of paper sizing chemicals. The petitioner argued that there was no objection by the Department for the earlier imports classified under CTH 2914 1990, but suddenly, the Revenue sought to classify the goods under CTH 3404 9090. The petitioner contended that the goods did not meet the characteristics of artificial wax under CTH 3404 and should not be directed to predeposit due to lack of past demand. The Department, on the other hand, claimed that the goods were wax with characteristics of Heading 3404 9090 and that the change in classification was sought to avail an exemption notification.

The Tribunal considered the submissions from both sides and decided to waive the predeposit during the pendency of the appeals. This decision was based on the diversity in classification in different customs jurisdictions and the potential prejudice to either side due to the huge demand raised from the change in classification. The Tribunal acknowledged that such orders are not passed normally but deemed it necessary in this case to ensure justice and prevent hardship caused by the reclassification of goods imported over several years, with the change sought only for the disputed consignments.

Overall, the judgment focused on the classification dispute between CTH 2914 1990 and CTH 3404 9090 for the imported goods, leading to the decision to waive predeposit to expedite the resolution of the appeals and mitigate the potential hardships faced by both parties.