2018 (1) TMI 174 - AT - Customs

Classification of various types of imported coals - benefit of N/N. 21/2002 - Held that - this Bench in the case of JSW Steel Ltd Versus CC, Vijayawada 2017 (11) TMI 1584 - CESTAT HYDERABAD , had held that the coal imported by the respondent during the period 01.03.2009 to 31.03.2010 would be eligible for the benefit of exemption N/N. 21/2002-Cus. - importer M/s JSW Steel Ltd., are eligible for benefit of N/N. 21/2002 on the coal imported by them - appeal dismissed - decided against Revenue.

Summary

Issues:
Classification of imported coals for exemption from Basic Customs Duty under Notification No.21/2002.

Analysis:
The appeal before the Appellate Tribunal CESTAT Hyderabad concerned the classification of various imported coals as Bespoke optimum semisoft corex coal, Soft coking coal, Semi-soft coking coal, Black water soft coking coal, and Capricorn PCI coal during May 2010 to December 2010, and the exemption from Basic Customs Duty under Notification No.21/2002. The Adjudicating Authority initially held that the imported coal should be capable of conversion into coke to bear the charge in a blast furnace. The appellant contested this decision, providing technical data to support the use of weak coking coal directly in coking coal technology without conversion into coke. The First Appellate Authority set aside the original order, ruling that the respondent was eligible for exemption and should receive refunds for the amounts collected due to finalization of the Bills of Entry.

The Department appealed the First Appellate Authority's decision, arguing that the technical literature submitted by the appellant was incorrectly appreciated. They cited contrary technical literature on coking coal and referenced various definitions from sources like the McGraw-Hill Dictionary and Wikipedia. They also relied on a previous Tribunal decision to support their claim that the imported goods were not coking coal, thus challenging the exemption granted by the First Appellate Authority.

In response, the Counsel for the respondent pointed out a similar issue decided by the Mumbai Tribunal and referenced a previous Bench decision that allowed appeals for another company on the same issue, confirming eligibility for exemption under Notification 21/2002-Cus. The Appellate Tribunal, after careful consideration, upheld the First Appellate Authority's decision, citing a previous order by the same Bench that had ruled in favor of the respondent on a similar issue. The Tribunal found no reason to deviate from the previous view and concluded that the coal imported by the respondent was indeed eligible for the benefit of the exemption under Notification No.21/2002-Cus.

Therefore, the Appellate Tribunal held that the First Appellate Authority was correct in determining the eligibility of the importer for the benefit of Notification No.21/2002 on the imported coal. The impugned order was deemed correct and legal, requiring no further interference, leading to the rejection of the appeal.