Home Case Index All Cases Customs Customs + AT Customs - 2022 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (9) TMI 1109 - AT - CustomsClassification of imported goods - diagnostic kits –ELISA - diagnostic kits – CLIA - diagnostic reagents on backing - controls and calibrators - other consumable reagents - to be classified under tariff item 3822 0019 or 3822 0090 of First Schedule to Customs Tariff Act, 1975 - applicability of N/N. 1/2017 – Integrated Tax (Rate) dated 28th June 2017 which prescribes the rates at which integrated tax is to be levied on inter-state supply of goods - HELD THAT:- It is not the case of Revenue that any or all of the impugned goods do not find fitment in heading 3822 of the First Schedule to Customs Tariff Act, 1975 or that the ‘integrated tax’ rate at serial no. 80 of Schedule II is, by the corresponding description, unquestionably excluded from every tariff item comprising heading 3822 of the First Schedule to Customs Tariff Act, 1975. Nor is it the case of Revenue that the ‘kits’ at serial no. 180 of Schedule I of the ‘integrated tax’ rate notification do not find placement in chapter 38 of First Schedule to Customs Tariff Act, 1975. The exercise in classification undertaken in adjudicating the proposal to take recourse to an alternate entry should have adhered to the judicially established rules of engagement. Instead of deliberating on the validity, and appropriateness, of a tariff item in the First Schedule to Customs Tariff Act, 1975 other than that claimed in the bills of entry after due notice to the importer, the adjudicating authority adopted a process of elimination of the enumeration of descriptions in the Schedules to the ‘integrated tax’ rate notification, and ignoring the scheme of its presentation, with the erroneous assumption of jurisdiction to place goods within the ambit of the residuary entry in Schedule III of the ‘integrated tax’ rate notification. Insofar as the imported goods are concerned in the light of statutory circumscribing of levy of ‘integrated tax', and there being no prejudice to interests of revenue thereby, the declared classification of the imported goods prevails. Legislative intent is not imposition of burden of ‘integrated tax’ on the person importing goods and the onus for altering classification has not been discharged. The charge of misdeclaration of goods does not sustain and hence confiscation and penalty are also set aside. Appeal allowed.
|