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2024 (3) TMI 362 - CESTAT AHMEDABADClassification of goods - benefit of exemption - Import of Flexi tanks - containers of durable nature - Demand duty - fine and penalty - Notification No. 104/94–Cus - HELD THAT:- We are of the view that the Department has not appreciated the nature and characteristics of the imported goods and have relied only on the Statements recorded during investigation to conclude that the said goods are not durable and therefore not eligible for exemption under the said scheme. It is the claim of the Appellant that the adjudicating authority has not produced any evidence in support of their claim and have only relied on Board Circular No. 69/2002–Customs to allege that the goods of the Appellant are not durable. We find that the term ‘durable containers’ needs to be understood in the context in which they are used with reference to the type of materials of which the container is and the purposes for which it is intended to be used. We observe that durability is a relative term and given the advancement of technology materials are capable of providing strength and resistance towards normal wear and tear and can be attributed with persistent utility when in terms of the notification such goods are to be re-exported. Therefore, we are of the view that the issue needs to verified from the factual matrix given that the nature and characteristics of the product need to be examined in order to determine whether Flexi Tanks will be considered durable or not. Hence, the nature of the goods need to be determined by way of proper test/ technical literature for which the matter is remanded for re-consideration to the adjudicating authority. Thus, no findings have been recorded on merits and are leaving the issue open. Appeal is allowed by way of remand to the adjudicating authority.
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