2024 (1) TMI 144 - AT - Customs

Classification of imported goods - quicklime used by the appellant in their manufacture of paper - whether classifiable under the CTH 2522 1000 as declared by the appellant or under CTH 2825 9090 as claimed by the Revenue? - HELD THAT - There is no dispute on the fact that the CaO content in the quicklime is less than 98% i.e. between the 92-97% and the process carried out by the supplier is only calcination, these facts are not under dispute. On this identical facts, the very same issue has been considered by this Tribunal in the case of M/S. JINDAL STAINLESS (HISAR) LTD. VERSUS COMMISSIONER OF CUSTOMS NEW DELHI 2020 (8) TMI 743 - CESTAT NEW DELHI , wherein it was held that the product is rightly classified under chapter 25. From the above decision of this Tribunal, it can be seen that when only calcination process is carried out and CaO content is less than 98%, than the quicklime is correctly classification under CTH 2522 1000. Since, the identical facts involved in the present case, the ratio of the above decision is directly applicable in this case. The impugned order set aside - appeal allowed.

Summary

Issues involved:
The classification of imported quicklime used in the manufacture of paper under CTH 2522 1000 as declared by the appellant or under CTH 2825 9090 as claimed by the Revenue.

Judgment Summary:

Issue 1: Classification of imported quicklime
The appellant argued that the quicklime, with a CaO content between 92-97%, imported for paper manufacturing should be classified under CTH 2522 1000 due to the calcination process not changing its nature. Reference was made to a previous Tribunal decision in a similar case. The Revenue supported the impugned order. The Tribunal examined the facts and referred to a previous decision involving purity levels and HSN explanatory notes. It differentiated the case from another ruling on burnt lime classification. The Tribunal concluded that with CaO content below 98% and only calcination process, the quicklime should be classified under CTH 2522 1000, in line with the Bhadradri Minerals Pvt. Ltd. case. The appeal was allowed based on this analysis.

Conclusion:
The Tribunal found that the quicklime, with CaO content below 98% and subjected only to calcination process, should be classified under CTH 2522 1000, as per relevant case law. The impugned order was set aside, and the appeal was allowed.