2017 (2) TMI 185 - AT - Customs

Classification of imported goods - Thiourea - confiscation on the ground that the same were insecticide and required import permit issued by the Registration Committee - Held that - the Registration Committee was held in the Krishi Bhawan in chairmanship of Agricultural Commissioner where the concerned Ministry is of the opinion that if boric acid is used for non-insecticidal purpose, no registration is required under the Insecticide Act, 1968. In other case, however, it may necessary to obtain registration - the appellants are also traders and the imported goods have been used for non-insecticidal purpose - appellants do not require any import permission - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of imported Thiourea under Chapter 29 or Chapter 38, requirement of import permit under the Insecticides Act, applicability of previous Tribunal decision on Boric Acid.

Classification Issue: The appellant imported Thiourea claiming classification under Chapter 29, while Revenue sought to classify it under Chapter 38 due to its listing in the Insecticides Act. The Order-in-Original classified the product under Chapter 38 and confiscated the goods for requiring an import permit under the Insecticides Act. The Commissioner (Appeals) upheld the confiscation but allowed the classification under Chapter 29. The appellant argued that a previous Tribunal decision on Boric Acid established that if a substance is used for non-insecticidal purposes, no registration is required under the Insecticides Act. The Tribunal agreed, applying the ratio of the Boric Acid decision, and allowed the appeal, classifying Thiourea under Chapter 29.

Import Permit Issue: The Revenue contended that the imported Thiourea required an import permit under the Insecticides Act due to its potential use as an insecticide. However, the appellant argued that they were traders and the imported goods were used for non-insecticidal purposes, hence not requiring any import permission. The Tribunal, relying on the previous decision regarding Boric Acid, found no evidence that the Thiourea was used for insecticidal purposes, thus concluding that importation did not necessitate registration under the Insecticides Act.

Applicability of Previous Tribunal Decision: The Tribunal referred to a previous decision concerning Boric Acid, where it was established that if a substance is used for non-insecticidal purposes, no registration under the Insecticides Act is necessary. The Tribunal applied the ratio of the Boric Acid decision to the current case involving Thiourea, ultimately allowing the appeal based on the findings of the previous judgment.

In conclusion, the Tribunal allowed the appeal, classifying the imported Thiourea under Chapter 29, as per the established principles from a previous decision regarding Boric Acid, which determined that substances used for non-insecticidal purposes do not require registration under the Insecticides Act.