2018 (12) TMI 1633 - AT - Customs

Classification of imported goods - Faceted Glass Beads - whether classified under Tariff Item 7018 10 20 leviable to nil rate of duty or under Tariff Item No. 7018 10 90 of the Customs Tariff Act 1975? - Held that - It stands held in the decision of the Tribunal in the case of Starlite Corporation Bombay v. Union of India 1985 (12) TMI 61 - HIGH COURT OF JUDICATURE AT BOMBAY that chatons are classifiable as glass beads and eligible for exemption - appeal dismissed - decided against Revenue.

Summary

Issues:
Correct classification of 'Faceted Glass Beads' imported by the respondent under Tariff Item 7018 10 20 or 7018 10 90 of the Customs Tariff Act, 1975.

Analysis:
The appeal involved the issue of correctly classifying 'Faceted Glass Beads' imported by the respondent. The importer claimed classification under Tariff Item 7018 10 20 with nil rate of duty, while the Revenue sought classification under Tariff Item No. 7018 10 90. The Commissioner initially favored the importer, considering 'chatons' as a type of bead classifiable under Tariff Sub-Heading no. 70181020. The Commissioner relied on judicial findings confirming 'chatons' as beads, supported by opinions from certified authorities like the Indian Institute of Gemology and Deputy Chief Chemist of Customs House. The Commissioner emphasized that the imported goods should be classified under Chapter sub-heading no. 70181020, exempt from Countervailing Duty due to the nil Central Excise duty rate for 'Beads' at the material time.

The Tribunal referenced previous decisions to support the classification of 'chatons' as glass beads eligible for exemption. Decisions in cases like Starlite Corporation, Rajan Kumar & Bros. (Impex) Pvt. Ltd., VMB Impex, and Art Beads Pvt. Ltd. upheld the classification of 'chatons' as glass beads. Notably, the Supreme Court confirmed the Tribunal's decision in VMB Impex, reinforcing the classification of 'chatons' under Chapter sub-heading no. 70181020. Given the precedent set by these decisions, the Tribunal found no grounds to interfere with the Commissioner's order and rejected the Revenue's appeal.

In conclusion, the Tribunal upheld the classification of 'Faceted Glass Beads' as 'chatons' under Tariff Item 7018 10 20, in line with previous judicial decisions and the Commissioner's findings. The appeal by the Revenue challenging the Commissioner's order was dismissed based on established legal precedents and the classification of 'chatons' as glass beads eligible for exemption.