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2020 (2) TMI 1603 - AT - CustomsClassification of imported goods - Desiccants-MBD 99 - to be classified under CTH 250810190 of Customs Tariff Act, 1975 or under CTH 38029019 of CTA, 1975 - It is alleged that the activated clay/ activated earth/ processed bentonite falls under CTH 3802.90 since it is acid activated, because of which a different product with modified molecular structure having distinct properties like absorptive capacity, catalytic properties, ion exchange capacity bearing different industrial use, emerges? - extended period of limitation. HELD THAT:- In narrating the facts in the appeal memo, the appellant has stated that the said product was ‘Heat Processed and Grounded Bentonite’ having the property of absorbing moisture and by heat processing the water contents are removed to improve absorbent property of the said Bentonite clay. We need not analyze the issue of classification any further as the product imported by the appellant is more or less similar to the product considered by the Tribunal in KOMAL TRADING COMPANY VERSUS COMMISSIONER OF CUS. (IMPORT), MUMBAI [2014 (5) TMI 754 - CESTAT MUMBAI] where it was held that for the period from 1-2-2003 to 31-12-2006, activated Bentonite has to be classified under CTH 2508 10 90 (because of its specific inclusion in the tariff description). However, for the period prior to 1-2-2003 and from 1-1-2007 onwards, when there is no specific inclusion, in view of Note 1 to Chapter 25 which excludes products whose structure has undergone a change, the said product merits classification under CTH 3802 90 19. Thus, the product Desiccants - MBD 99 is correctly classifiable under chapter sub-heading 38029019 of CTA, 1975. Extended period of limitation - HELD THAT:- In the present case also, there is no suppression of facts or mis-declaration as all the relevant materials were submitted by the appellant at the time of import of goods for assessment. Accordingly, invoking extended period in confirming the demand is unsustainable. The impugned order is upheld to the extent of confirming the classification of the imported goods under CTH 38029019. However, the demand confirmed invoking extended period of limitation and imposition of penalty and confiscation directed against the appellant are hereby set aside - Appeal allowed in part.
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