2016 (11) TMI 1 - AT - Customs

Classification of goods - whether the goods namely LED Panel Indicator imported by the respondent is classifiable under Heading 85312000 as claimed by the respondent or 85318000? - Held that - the Revenue though classified the goods in the bill of entry under Customs Tariff Heading No.85318000 has not challenged the same before Commissioner (Appeals). It is the respondent who challenged the classification in the Bill of Entry by filing appeal before the Commissioner (Appeals). The Commissioner (Appeals) decides the classification under heading 85312000. Therefore if at all any appeal is maintainable before the Tribunal of the Revenue shall be on the issue of conflicting tariff heading between the 85318000 and 85312000. The department is not allowed to file the appeal before the Tribunal claiming some third tariff item number 8538 - appeal dismissed - decided against Revenue.

Summary

Issues involved: Classification of imported goods under Heading 85312000 or 85318000, appeal by the department challenging the classification, typographical error in mentioning the classification under Heading 8538, maintainability of appeal before the Tribunal.

Classification of goods: The main issue in this case was the classification of LED Panel Indicator imported by the respondent under Heading 85312000 as claimed by the respondent or under 85318000. The department deviated from the main issue by seeking to classify the goods under a different heading, 8538, in their appeal instead of 85318000. The Ld. Assistant Commissioner clarified that the intention was to seek classification under Heading 85318000, attributing the mention of 8538 to a typographical error.

Contention of the parties: The Ld. Counsel for the respondent argued that the department's claim of typographical error was not valid as the description of goods mentioned for classification under 8538 was parts of Electrical Control Panel, indicating a conscious deviation from the earlier classification under 85318000. The respondent had challenged the classification in the Bill of Entry before the Commissioner (Appeals), who decided in favor of classification under 85312000. The Ld. Counsel cited Supreme Court judgments to support the argument that the department cannot introduce a new classification at the Tribunal stage.

Judgment and analysis: The Tribunal carefully considered both parties' submissions and found that the department, having classified the goods under 85318000 in the Bill of Entry, did not challenge this classification before the Commissioner (Appeals). As the respondent had challenged the classification and the Commissioner (Appeals) decided in favor of 85312000, any appeal by the Revenue before the Tribunal should be limited to the conflicting tariff headings between 85318000 and 85312000. The Tribunal held that the department could not introduce a new classification under a third tariff item number, 8538, at the Tribunal stage. The Tribunal dismissed the Revenue's appeal, citing the judgments referred to by the Ld. Counsel. The cross-objection was also disposed of accordingly. The judgment was pronounced on 31/08/2016 by the Tribunal.