Home Case Index All Cases Customs Customs + AT Customs - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 1244 - CESTAT MUMBAIJurisdiction - Levy of IGST on import of goods - classification pumps and pump filters imported for for ‘washing machines’ and ‘dishwashers’ - extent of intervention permissible to officer of customs under the authority of Customs Act, 1962 for re-determination of ‘rate of duty’ in a levy empowered by section 3(7) of Customs Tariff Act, 1975 - discharge of onus - HELD THAT:- The appellant was placed on notice of recovery under section 28 of Customs Act, 1962 on the ground that the classification claimed by them did not quite fit the bill as the ‘pumps’ were not to be used exclusively for handling water and that the classification claimed by them for the purpose of section 12 of Customs Act, 1962 was for ‘parts’ which called for levy of integrated tax at 18%. There was, however, no proposal for reclassification of the impugned goods under the appropriate sub-heading in chapter 84 of First Schedule to Customs Tariff Act, 1975 thus demonstrating unacceptable inconsistency. In ORTHO CLINICAL DIAGNOSTICS INDIA PVT LTD. VERSUS COMMISSIONER OF CUSTOMS (IMPORT) , MUMBAI [2022 (9) TMI 1109 - CESTAT MUMBAI], the Tribunal had examined the extent and scope of empowerment as well as prejudicial effect on exchequer insofar as levy under section 3(7) of Customs Tariff Act, 1975 is concerned and it was held that 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. Thus, essential onus devolving on customs authorities for re-classification has not been discharged in the impugned proceedings. Consequently, and respectfully following the order of the Tribunal in Ortho Clinical Diagnostics Pvt Ltd, the impugned order is set aside to allow the appeal. Appeal allowed.
|