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2025 (3) TMI 637 - AT - CustomsClassification of the imported goods - Synthetic Casting Tapes - to be classified under CTH 9021 or under CTH 30059040 - invocation of extended period of limitation under Section 28(4) of the Customs Act 1962 - HELD THAT - The issue involved in the present appeal is no more res-integra. In the case of Johnson Johnson 1998 (9) TMI 184 - CEGAT NEW DELHI it was held that the Deltalite Casting Tapes imported by the appellants herein fall for classification under sub--heading 3005.10 of the Customs Tariff Act. Extended period of limitation - HELD THAT - There is also no dispute that at least 2 of the orders of other Benches where the classification was decided were available when the Bills of Entry came to be filed. The appellant had also relied upon on order of Mumbai Bench in C. Natwarlal Co. 2005 (4) TMI 331 - CESTAT MUMBAI reported in the year 2005 and hence the appellant cannot plead ignorance of the above orders which were reported much earlier in the years 1999 2000. The larger period has been correctly invoked and hence the appellant has to suffer the consequence. Conclusion - i) The goods in question are not in the nature of a device/instrument/appliance and hence cannot be considered as coming within the coverage of Heading 90.21. ii) The larger period has been correctly invoked and hence the appellant has to suffer the consequence. There are no merit in the appeal - appeal dismissed.
ISSUES PRESENTED and CONSIDERED
The core legal issue considered in this case is whether the reclassification of the imported goods, specifically 'Synthetic Casting Tapes' under the brand name 'Articast', from CTH 9021 to CTH 30059040 by the revenue authorities is justified. Additionally, the issue of whether the extended period of limitation under Section 28(4) of the Customs Act, 1962, was correctly invoked is also considered. ISSUE-WISE DETAILED ANALYSIS 1. Classification of Imported Goods Relevant legal framework and precedents: The classification of goods under the Customs Tariff Act is guided by the Harmonized System of Nomenclature (HSN) and relevant judicial precedents. The appellant classified the goods under CTH 9021, which pertains to orthopaedic appliances, while the revenue classified them under CTH 30059040, which covers bandages and similar articles. Court's interpretation and reasoning: The Tribunal referred to previous decisions, notably the Johnson & Johnson case, which classified similar goods under CTH 3005. The Tribunal found that the imported goods were akin to bandages and not orthopaedic appliances as claimed by the appellant. Key evidence and findings: The imported goods, described as polyester cotton material coated with polyurethane resin, were found to be similar to bandages with adhesive layers, aligning with the description under CTH 3005. Application of law to facts: The Tribunal applied the legal framework and precedents to determine that the goods should be classified under CTH 3005, as they were not appliances but rather bandages with specific medical applications. Treatment of competing arguments: The appellant argued that the goods were orthopaedic appliances used for treating fractures. However, the Tribunal held that the goods did not fit the description of orthopaedic appliances under CTH 9021 as they were not devices or instruments. Conclusions: The Tribunal concluded that the goods were correctly classified under CTH 3005, upholding the revenue's classification. 2. Invocation of Extended Period of Limitation Relevant legal framework and precedents: Section 28(4) of the Customs Act allows for the invocation of an extended period of limitation in cases of collusion, willful misstatement, or suppression of facts. Court's interpretation and reasoning: The Tribunal noted that previous orders on similar classifications were available at the time of the appellant's import declarations, indicating that the appellant should have been aware of the correct classification. Key evidence and findings: The Tribunal found that the appellant's classification was inconsistent with existing precedents and that there was a failure to disclose material facts, justifying the invocation of the extended period. Application of law to facts: The Tribunal applied the provisions of Section 28(4) and determined that the appellant's actions warranted the invocation of the extended period due to suppression of facts. Treatment of competing arguments: The appellant contended that there was no willful misstatement or suppression. However, the Tribunal found that the appellant's reliance on outdated precedents did not excuse the misclassification. Conclusions: The Tribunal upheld the invocation of the extended period of limitation, finding it justified under the circumstances. SIGNIFICANT HOLDINGS The Tribunal held that the classification of the imported goods under CTH 3005 was correct, as they were similar to bandages and not orthopaedic appliances. The Tribunal cited the Johnson & Johnson case, emphasizing that goods similar to bandages with adhesive layers fall under CTH 3005. The Tribunal also upheld the invocation of the extended period of limitation under Section 28(4) of the Customs Act, finding that the appellant's actions constituted suppression of facts. Verbatim quote: "The goods in question are not in the nature of a device/instrument/appliance and hence cannot be considered as coming within the coverage of Heading 90.21." The Tribunal dismissed the appeal, affirming the revenue's classification and the invocation of the extended period of limitation.
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