2016 (11) TMI 217 - AT - Customs

Compact Disc Re Writer (CDRW) - classification of goods - whether goods to be classified under CTH 8471.70.60 under Tariff heading 8471.70 - Claiming benefit of exemption from levy of additional customs duty (CVD) - benefit of N/N. 6/2002-C.Ex - Held that - Sl. No. 261A envisages inter alia the benefit of notification 6/2002 to be extended to CD-ROM drive and not CDRW. Further, as correctly observed by the original authority, CDRW is required to be classified as 8471.7090 as all other subheadings of 8471-70 are specific headings; in any case ,goods CDRW are not covered by CTH 8471 7020 since this is a specific heading only for hard disc drives(HDD). Therefore the appellants are not eligible for exemption as per the Notification No.6/2002 and is a clear case of mis-declaration of goods - appeal rejected - decided against appellant.

Summary

Issues:
Classification of imported goods under Central Excise Notification No.6/2002-C.Ex for duty benefit.

Analysis:
The case involved the classification of imported goods, specifically 200 'CDRW,' under Central Excise Notification No.6/2002-C.Ex for duty benefit. The appellant imported the goods and declared an assessable value based on the invoice price. They claimed a Nil rate of duty benefit under the said notification, citing the goods falling under Sl. No. 261A and classification CTH 8471.70.60. However, Customs classified the goods under 8471.70.90 as 'others,' not eligible for the claimed benefit, requiring payment of 16% advolerum of additional duties. A demand notice was issued under the Customs Act, 1962, questioning the benefit claimed and seeking recovery of duties. The Assistant Commissioner confirmed the proposals, leading to the appeal before the Commissioner (Appeals).

The Tribunal noted that the appellant had availed the benefit of Notification No.6/2002-CX during import to claim nil payment of CVD, asserting that the imported item, CDRW, fell under Sl.No. 261A of the notification. However, the Tribunal observed that entry 261A of the notification specifically mentioned CD-ROM drive, not CDRW. It was determined that CDRW should be classified as 8471.7090, distinct from the specific headings under 8471-70, making the appellant ineligible for the exemption claimed. The Tribunal concluded that the case constituted a clear mis-declaration of goods, finding no merits in the appeal and subsequently dismissing it.

In conclusion, the Tribunal upheld the classification of the imported goods as per Central Excise Notification No.6/2002-C.Ex, denying the appellant's claim for duty benefit due to the mis-declaration of the goods. The decision reaffirmed the specific classification requirements under the notification and emphasized the importance of accurate declaration to avail duty exemptions, ultimately resulting in the dismissal of the appeal.