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TMI Blog2014 (8) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... of ‘cuttings’ appears under category I and it is referred in the contest while explaining different types of raw fibers that are covered under the said sub-heading. It is explained to mean the butt-ends of the fibers which are cut off and marketed separately - it is clear that the raw ‘jute cuttings’ are of different grades and are available in the market. It supports the contention of the Appellant that what they have imported are raw jute cuttings of different grades. No contrary evidence has been produced by the Revenue to establish that what the Appellant had imported, were not raw jute of cutting grades, but processed ‘jute cuttings’. Under the re-structured eight digit new tariff entry, the raw jute of cutting grades are not classifiable under CSH 53039010, as the ‘jute cuttings’ mentioned in the said entry does not refer to raw jute of cutting grade. On the other hand, in view of the items covered under the broad heading 53.03, along with the explanation of inclusion of various items covered under the said heading as mentioned in the HSN, undoubtedly, the inference goes in favour of the assessee that what they had imported, were raw jute of cutting grade and correctly cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on No.105/99-Cus. dated 10.04.1999 be allowed. Aggrieved, the Appellants filed the present Appeal. 4.1 The Ld. Advocate appearing for the Appellants has submitted that the ld. Commissioner (Appeals) has exceeded the scope of the appeals filed before him, in as much as the Appellants had not challenged the inclusion or otherwise of the freight element in the assessable value, and also not disputed the benefit of exemption Notification No.105/99-Cus, as these issues were adjudicated in their favour; the Department has also not challenged the Order of the Adjudicating Authority, therefore, remanding the matter to the Adjudicating Authority to ascertain the above issues afresh which are settled in their favour, is bad in law and hence, liable to be set aside. 4.2 It is his submission that the Raw Jute which they imported, cannot be considered as jute cuttings , as confirmed by the authorities below. The said Raw Jute in common Trade Parliance is not known as jute cuttings, as contended by the Department. 4.3 The Ld. Advocate further submitted that the goods imported by the Appellant are of raw jute as known and understood in common parlance. Referring to the invoice of Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enjoyed an exemption under notification 21/2002 cus. Dt. 01.03.2002 at serial number 170 of the said notification along with SAPTA notification number 105/99-cus dated 10 August 1999. It is his submission that eight-digit Customs Classification Code introduced with effect from 1st February, 2003 had replaced the existing six digit Classification Code, which was in force since 1986. Consequently, a Notification was issued bearing No.16/03-Cus. dated 24.01.2003, it was made clear in the said Notification that even after the introduction of the 8 digit classification code there would be no change in the duty structure and the notifications issued during the currency of the six digit code would continue to apply to the goods mentioned therein except that the classification would be as per under new eight digit Code. He has contended that the object of issuing the said Notification No.16/03-Cus. was to ensure that the duty-structure remained the same and the benefit of exemptions earlier available should not be denied. He has submitted that even with the introduction of the eight digit Code, at Serial No.170 of exemption Notification No.21/02-Cus, the description of Raw Jute has not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngla White Cutting Grade A, which could have cutting range upto 10 ; Jute cuttings are low in quality but have commercial value for the paper carded yarn and other fibre processing industry. The lower part is hard fibre, which is called jute cuttings in Bangladesh and India. Regarding the exemption claimed by the Appellant, he submits that the classification cannot be decided by virtue of the exemption Notification. It is his plea that when there is a specific entry for classification for the jute cuttings under the new eight digit code, the classification cannot be made taking recourse to earlier Tariff Heading 5303.10 under six digit code of classification. Regarding the issue of determination of assessable value and benefit of exemption Notification No.105/99-Cus. dated 10.08.99, the ld. Commissioner has rightly remanded the matter for re-verification to the Adjudicating Authority, has he has power to modify/annul the Order of the lower authority in the manner he likes. 6.1 Heard both sides and perused the records. The principal question for determination is: whether the imported goods described as raw jute (BWCB/BTCA) in the respective Bills of entry are classifiable un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her, referring to the meaning of cuttings in the HSN he has observed that cuttings is defined as the butt ends of the fibre which are cut off and marketed separately. And in the present case the imported goods are described as cuttings and the value is admittedly at higher side in comparison to normal jute fibres. 6.5 The Ld. Commissioner(appeals) has endorsed the aforesaid reasoning and concluded that the imported goods are rightly classifiable under CTH 53039010 and not under 53031010 CTA,1975. 6.6 Before entering into the discussion on the correct classification of the imported raw jute, under the new eight digit tariff entry, it is necessary for a better understanding, to compare the old and new tariff entry. The old Tariff entry reads as below: Heading Sub-heading Description of article Rate of duty Standard Preferential Areas 53.03 Fibres (excluding flax, true Hemp and ramie), raw or Processed but not spun ; tow and waste of these fibres (including yarn waste and Garneted stock) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant under the old tariff entry is not disputed by the revenue. The revenues contention is that after restructuring of the said tariff entry under the new 8 digit code, the subheading 5303.10 is further divided into two, namely, 53031010, which covered jute, raw or retted and entry 53031090 for other . Similarly, the residuary entry 5303.90 has also been divided into two, namely, 53039010 jute cutting and 53039090 for other . In other words, the contention of the revenue is that when there is a specific entry for jute cutting, irrespective of processed or raw, the same should be classifiable under the specific heading 5303 9010. 6.10 Thus, the moot point , precisely in this case is, whether, after the introduction of 8 digit classification, the raw jute of cutting grade, imported earlier by the appellant, assesses under chapter subheading 5309.10, would continue to be classifiable under the restructured comparable entry, namely, 5303 1010 or be shifted to the new entry 5303 9010. 6.11 To advance their argument, the Ld. A.R for the revenue, heavily relied upon the meaning of cuttings explained in the HSN. The explanation under Chapter heading 53.03 reads as: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same are classifiable under Chapter Heading 53039010 of restructured eight digit tariff entry. During the course of arguments, the ld. AR for the Revenue while referring to the information contained in the websites submitted that varieties of raw jute are available in the market including the jute cuttings that are bought and sold in the market, hence the items imported by the Appellant are classifiable as jute cuttings under CSH 53039010 being the specific entry. 6.14 On going through the said literature, we find that it has been mentioned that jute cuttings are lower in quality, but have commercial value for the paper, carded yarn, and other fiber processing industries; the lower part is hard fiber which is called jute cuttings in Bangladesh and India (commonly called jute butts or jute tops elsewhere). It further mentions that available raw jute cutting grades are as follows:- Bangla Tossa BTCA - Bangla Tossa Cuttings A BTB - Bangla Tossa Cuttings B Bangla White BWCA - Bangla White Cuttings A BWCB - Bangla White Cuttings B 6.15 Therefore, it is clear from the above that the raw jute cuttings are of different grades and are available in the market. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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