2018 (12) TMI 667 - AT - Customs

Classification of imported goods - mixture of fatty acids having stearic acid, palmitic acid and other fatty acids with stearic acid ranging from 40-45%. - whether classified under CTH 38231119 or otherwise? - Held that - There is no dispute about the fact that imported goods namely Stearic Acid and KortAcid have 54-58% of Palmatic Acid and 40-45% of Stearic Acid. As per the published literature palm stearin contains about 40- 60% of palmitic acid (C-16 chain), remaining being steric acid (C-18.0) and Oelin (C-18.1 & C-18.2). Hence the imported goods answer to the definition of palm stearin and need to be classified accordingly. There is no hesitation in upholding the classification of imported goods under CTH 38231119 as determined by the Assistant Commissioner and Commissioner (Appeal). Benefit of N/N. 21/2002-Cus dated 1st March 2002 - Held that - In absence of any findings from the authorities below in respect of this claim made by the appellants we are not in position to render independent finding on this plea. Accordingly matter needs to be remanded back to adjudicating authority for consideration of the claim of exemption under Sl No 491 of Notification No 21/2002-Cus dated 1st March 2002 available to imported goods classifiable under CTH 38231119. The matter needs to be remanded to adjudicating authority - appeal allowed by way of remand.

Summary

Issues: Classification of imported goods under CTH 38231119, Benefit of exemption under Notification No 21/2002-Cus

In this case, the appellant imported goods claiming classification under CTH 29157020 and paid duties accordingly. However, a Show Cause Notice was issued proposing to classify the goods under heading 38231119 due to the chemical composition. The Assistant Commissioner directed the importer to pay duty difference, which was upheld by the Commissioner (Appeal). The appellant contended that the goods should be classified under CTH 38231190 or, alternatively, under CTH 38231119 with the benefit of exemptions under Notification No 21/2002-Cus. The Tribunal analyzed the chemical composition of the goods, noting the presence of stearic acid and palmitic acid, and upheld the classification under CTH 38231119. However, the Tribunal found that the Commissioner (Appeal) did not address the appellant's claim for exemption under the notification. As a result, the matter was remanded back to the adjudicating authority for consideration of the exemption claim. The Tribunal directed the adjudicating authority to dispose of the matter within three months.