2018 (12) TMI 617 - AT - Customs

Classification of imported goods - membrane elements - whether decided under CTH 84212190 or under CTH 84219900 OF CTA? - N/N. 6/2006-CE dt. 1.3.2006 - Held that - The undisputed facts are that against the 14 bills of entry filed during the period March 2007 and January 2008. The appellant had declared the classification of the product under CTH 84212190 and availed benefit of N/N. 6/2006-CE dt. 1.3.2006 as amended. The products which fall under Chapter Sub-heading 842121 as mentioned in Column (3) relating to the product Water purification equipment based on the technologies mentioned at Clause (a) (b) and (c) of the said entry is eligible to the benefit of said notification. Therefore the said notification allows exemption to water purification equipment only which are used for purification of water adopting technologies mentioned under Clause (a) to (d). The appellant themselves had admitted that exemption notification to the said product was inserted w.e.f. 1.3.2007 mentioning through new Sr. No. 8B where the classification of sub-heading was shown as 842121. Needless to mention to claim the benefit of an exemption the burden lies on assessee to satisfy that their case falls within the four corners of the Notification - appeal dismissed - decided against appellant.

Summary

Issues:
Classification of imported membrane elements under Customs Tariff Act, 1975, eligibility for Central Excise exemption Notification No. 6/2006-CE, burden of proof on the assessee for exemption claim.

Analysis:
The appeal was filed against an Order-in-Appeal passed by the Commissioner of Customs (Appeals), Mumbai-III, regarding the classification of imported membrane elements by the appellant. The appellant had declared the imported product as membrane elements under Chapter Heading No. 84212190 and claimed benefit under Central Excise exemption Notification No. 6/2006-CE. The Revenue contended that the membrane elements should be classified under a different heading and the benefit of the exemption was inadmissible. The Revenue argued that the imported membrane elements could not be considered as standalone water purification equipment and did not qualify for the exemption. The Revenue referred to a Supreme Court judgment to support their position.

The Tribunal considered the submissions and reviewed the facts of the case. The main issue was whether the membrane elements imported by the appellant should be classified under a different heading as per the Revenue or under the heading claimed by the appellant for eligibility under the exemption notification. The Tribunal analyzed the exemption notification and noted that it applied to water purification equipment based on specific technologies. The appellant argued that the membrane elements were essential parts of water purification equipment and should be considered as such. However, the Tribunal agreed with the Commissioner (Appeals) that the membrane elements themselves did not directly purify water and could not be classified as water purification equipment.

The Tribunal upheld the Commissioner (Appeals) decision that the imported membrane elements should be classified under a different heading than claimed by the appellant. The Tribunal emphasized that the burden of proof for claiming exemption rested on the assessee, as established in a Supreme Court judgment. Therefore, the Tribunal dismissed the appeal and upheld the impugned order, concluding that the appellant did not meet the requirements for the exemption.