2013 (12) TMI 939 - AT - Customs

Denial of benefit of exemption Notification No. 103/2009 - Demand of duty along with redemption fine and penalty - Clearance under EPCG scheme - Classification under Customs Tariff Heading 6802 92 00 or Customs Tariff Heading 6802 22 00 - Held that - adjudicating authority has classified the impugned goods under Customs Tariff Heading 6802 29 00, which is not in dispute. Therefore, the appellants are entitled for classifying the same under Customs Tariff Heading 6802 29 00 as per ITC (HS) Policy and entitled for benefit of Notification No. 103/2009 under EPCG scheme - Decide in favour of assessee.

Summary

Issues:
Classification of imported goods under Customs Tariff Heading, Benefit of Notification No. 103/2009, Denial of exemption, Duty demand, Redemption fine, Penalty.

Classification Issue:
The appellant imported goods declared as Processed Natural Limestone and claimed the benefit of Notification No. 103/2009 for clearance under EPCG scheme, classifying them under Customs Tariff Heading 6802 29 00. A show-cause notice reclassified the goods under Customs Tariff Heading 6802 92 00, denying the benefit of the notification. The adjudication classified the goods under 6802 29 00 but denied the exemption, citing Customs Tariff Heading 6802 22 00 of the ITC (HS) Policy. The appellant contended that the goods should be classified under 6802 29 00 as per ITC Notes, and the entry 6802 22 00 was withdrawn by a notification. The Addl. Commissioner argued for classification under 6802 92 00. The Tribunal found that the goods were correctly classified under 6802 29 00 as per the ITC Policy, allowing the appeal and granting the benefit of Notification No. 103/2009.

Benefit of Notification Issue:
The impugned order denied the benefit of Notification No. 103/2009 to the appellant, leading to a demand for duty, a redemption fine of Rs. 20 lakhs, and a penalty of Rs. 10 lakhs. The appellant contended that the goods were rightly classified under Customs Tariff Heading 6802 29 00, making them eligible for the notification's benefit. The Tribunal, after examining the impugned order, ITC Policy, and Customs Tariff Heading, concluded that the goods were correctly classified under 6802 29 00, entitling the appellant to the benefit of the notification. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief.

Conclusion:
The Tribunal ruled in favor of the appellant, allowing the appeal and granting the benefit of Notification No. 103/2009 by correctly classifying the imported goods under Customs Tariff Heading 6802 29 00 as per the ITC Policy. The appellant's contention that the withdrawn entry 6802 22 00 was not applicable at the time of importation was upheld, leading to the reversal of the denial of the exemption and the associated duty demand, redemption fine, and penalty.