2025 (2) TMI 752 - AT - Customs

Classification of imported Power Weeders - to be classified under Chapter Heading 8433 or under Chapter Heading 8432 of the Customs Tariff Act 1985? - concessional rate of duty - benefit of N/N.12/2012-Cus. dated 17.03.2012 - HELD THAT - The appellant had filed Bill of Entry No.3675794 dated 29.10.2013 for clearance of 150 sets of Rotary Power Weeder and on investigation it was found to be Brush Cutters and hence the benefit of Notification was denied demanding a duty of Rs.3, 91, 930/- which was paid under protest by the appellant. On further investigation for the period 06.12.2010 to 23.07.2013 similar goods were found to be Brush Cutters which were imported under concessional rate of duty hence the differential duty of Rs.26, 43, 951/- on the past clearances was also confirmed. With regard to past clearances it is found that Bills of Entry No. 4656425 dated 16.09.2011 6559041 dated 17.04.2012 6935540 dated 26.05.2012 7280139 dated 03.07.2012 the appellant has declared the items as Brush Cutters as also the description was correctly mentioned therefore the question of suppression does not arise. In view of the above there are no reason to sustain the demand beyond the normal period of limitation. Accordingly the demand is confirmed for the normal period. Regarding confiscation of goods valued at Rs.18, 65, 268/- is sustained however redemption fine reduced to Rs.2, 00, 000/- under Section 125 of the Customs Act 1962. Since demand is confirmed for normal period penalties imposed under Section 114A and Section 114AA is set aside. Penalties imposed under Section 112 and 114AA on Director S.V. Aravind is also set aside. Conclusion - i) Classification of Brush Cutters under Chapter Heading 8467 8990 is upheld. ii) Penalties not imposed due to suppression of facts. iii) Confiscation of goods sustained redemption fine reduced. Appeal allowed.

Summary

The issues presented and considered in the legal judgment are as follows:1. Classification of imported machines as 'Power Weeders' or 'Brush Cutters' under the Customs Tariff Act, 1985.2. Eligibility for concessional duty rate under Notification No.12/2012-Cus.3. Allegations of mis-declaration and suppression of facts by the appellant.4. Application of penalties under various sections of the Customs Act, 1962.Issue-wise detailed analysis:Issue 1: Classification of imported machines- Relevant legal framework and precedents: Previous Tribunal decisions classified similar products as 'Brush Cutters' under Chapter Heading 8467.- Court's interpretation and reasoning: Upheld classification as 'Brush Cutters' based on previous decisions.- Key evidence and findings: Appellant imported machines declared as 'Power Weeders' but found to be 'Brush Cutters'.- Application of law to facts: Classification under Chapter Heading 8467 confirmed.- Treatment of competing arguments: Appellant argued trade parlance uses 'brush cutter' and 'power weeder' interchangeably.- Conclusions: Classification as 'Brush Cutters' upheld.Issue 2: Eligibility for concessional duty rate- Relevant legal framework and precedents: Notification No.12/2012-Cus. provides concessional rate for specific goods.- Court's interpretation and reasoning: Denied benefit as goods were classified as 'Brush Cutters'.- Key evidence and findings: Appellant claimed benefit under the notification.- Application of law to facts: Benefit denied due to misclassification.- Treatment of competing arguments: Appellant argued goods were eligible for the benefit.- Conclusions: Benefit not granted due to misclassification.Issue 3: Allegations of mis-declaration and suppression- Relevant legal framework and precedents: Extended period of limitation and penalties under Customs Act, 1962.- Court's interpretation and reasoning: Extended period not invoked due to lack of suppression.- Key evidence and findings: Appellant declared goods as 'Brush Cutters' in some instances.- Application of law to facts: No suppression found, penalties not imposed.- Treatment of competing arguments: Revenue alleged mis-declaration for benefit.- Conclusions: Penalties not imposed due to lack of suppression.Significant holdings:- "Classification of 'Brush Cutters' under Chapter Heading 8467 8990 is upheld."- "Demand is confirmed for the normal period."- "Confiscation of goods sustained, redemption fine reduced to Rs.2,00,000/-."- "Penalties imposed under various sections of the Customs Act set aside."The Court pronounced the order on 18.02.2025, upholding the classification of the imported machines as 'Brush Cutters' and denying the concessional duty rate benefit. Penalties were not imposed due to the lack of suppression, and the redemption fine was reduced for the confiscated goods.