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2025 (5) TMI 1051 - HC - CustomsClassification of the imported Arecanuts goods - under Chapter 21 or under Chapter 8 of the CTH - seeking release of the goods on payment of appropriate duty - samples taken from the consignments for testing at Doctor s Analytical Laboratories Pvt. Ltd. - HELD THAT - This Court perused the recent judgment dated 04.03.2025 passed by the Hon ble The Chief Justice in W.A.Nos.3647 and 3648 of 2024 in an identical case as that of the respondent/Importer whereby the appeals filed by the review petitioners in reclassifying the arecanuts under Chapter 8 came to be dismissed thereby upholding the parameters fixed by the Authority for Advance Rulings by stating that a Co-ordinate Bench of this Court declined to interfere with the Ruling of the Authority of Advance Ruling thereby it attained finality. From perusal of record this Court is of the considered opinion that the grounds of the writ appeal are sought to be re-argued in these review applications. There is no error apparent on the face of the impugned judgment. The scope of review being very limited we are not inclined to delve into the grounds of review which were already dealt with by us in the impugned judgment. If such practice is adopted then it will amount to rehearing the appeal itself. Having failed before the Adjudicating Authority and before the First Bench of this Court the review applicants are still harping on the same argument which was negatived consistently. Further considering the fact that the detained goods are perishable in nature we direct the review applicants to comply with the direction issued in the impugned judgment forthwith. Accordingly the Review Applications stand dismissed.
1. ISSUES PRESENTED and CONSIDERED
The core legal questions considered by the Court in these review applications are:
2. ISSUE-WISE DETAILED ANALYSIS Issue 1: Correct Classification of the Goods under Customs Tariff Legal Framework and Precedents: The classification of goods under the Customs Tariff Act, 1975, is governed by the Customs Tariff Heading (CTH) system. The Authority for Advance Rulings (AAR) issues binding rulings under Section 28J of the Customs Act, 1962, which are binding on the applicant and the Customs Authorities. The classification dispute in this case centers on whether the goods imported (arecanuts) fall under Chapter 21 (specifically CTH 2106 9030) as "Betelnut Product as Supari" or under Chapter 8 (raw arecanuts). Court's Interpretation and Reasoning: The Court upheld the AAR's ruling dated 31.03.2017, which classified the goods under Chapter 21. The Court noted that the Customs Authorities and the Importer had accepted this classification, and that laboratory testing reports confirmed the nature of the goods as falling within the parameters fixed by the AAR. Key Evidence and Findings: Samples taken from the consignments were tested at Doctor's Analytical Laboratories Pvt. Ltd., Navi Mumbai, with reports dated 20.12.2022 confirming classification under Chapter 21. The moisture content of the arecanuts was found to be below 10%, consistent with roasted arecanuts, which fall under Chapter 21 rather than Chapter 8. Application of Law to Facts: The Court relied on the binding nature of the AAR ruling and the corroborative laboratory reports to conclude that the goods were correctly classified under Chapter 21. The Court also referred to a coordinate Bench's decision which established that arecanuts with moisture content below 10% are to be classified as roasted and thus fall under Chapter 21. Treatment of Competing Arguments: The Review Petitioners argued that the goods imported did not match the description in the AAR ruling and contended for classification under Chapter 8. However, the Court found that these arguments were already considered and rejected in prior proceedings and that the Review Petitioners were merely rearguing the issue. Conclusions: The classification of the goods under Chapter 21 was affirmed as correct and binding. Issue 2: Maintainability and Scope of Review Petition Legal Framework and Precedents: The power to review judgments is governed by Article 137 of the Constitution of India, Order XLVII Rule 1 of the Code of Civil Procedure, and the Supreme Court Rules, 2013. Review petitions are entertained only on limited grounds such as an error apparent on the face of the record or discovery of new evidence. The Supreme Court in various judgments has clarified that review is not an appeal in disguise and cannot be used to reargue or re-hear the case. Court's Interpretation and Reasoning: The Court extensively relied on the principles laid down in the recent Supreme Court judgment (Sanjay Kumar Agarwal vs. State Tax Officer) and other precedents to emphasize the limited scope of review. It held that the Review Petitioners failed to demonstrate any error apparent on the face of the record and were impermissibly attempting to reargue the matter already decided. Key Evidence and Findings: The Court noted that the Review Petitioners had already raised these contentions in earlier proceedings, including appeals before the Customs Authority for Advance Rulings and writ petitions, all of which were dismissed. The Review Petitioners' submissions were essentially a reiteration of prior arguments without any new or compelling grounds. Application of Law to Facts: Applying the settled legal principles on review jurisdiction, the Court found no justification to entertain the review petitions. The Court also observed that the Review Petitioners had not challenged the binding AAR ruling within the prescribed forums and timelines. Treatment of Competing Arguments: The Review Petitioners contended that there was a change in law or new legal precedents justifying review. The Court rejected this, stating that even a change in law or subsequent decisions by coordinate or larger Benches do not constitute grounds for review. Conclusions: The review petitions were dismissed for lack of any error apparent on the face of the record and for being an impermissible attempt to reargue the case. Issue 3: Binding Effect of Advance Ruling and Availability of Alternate Remedies Legal Framework and Precedents: Section 28J of the Customs Act, 1962, provides that Advance Rulings are binding on the applicant and the Customs Authorities. The availability of alternate remedies such as appeals before the Customs Authority for Advance Rulings and writ petitions before High Courts is recognized, but the jurisdictional limits and procedural requirements must be adhered to. Court's Interpretation and Reasoning: The Court held that the AAR ruling dated 31.03.2017 was binding on the Review Petitioners and the Importer. It rejected the contention that the Review Petitioners could challenge the classification outside the prescribed forum or by way of review petitions. The Court also noted that writ petitions were maintainable where the order was passed without jurisdiction, as held in cited precedents. Key Evidence and Findings: The Court referred to the order of the Bombay High Court dated 18.12.2023, which quashed an order passed without jurisdiction and upheld the binding nature of the AAR ruling. The Supreme Court's dismissal of the Department's Special Leave Petition further reinforced the finality of the classification issue. Application of Law to Facts: The binding effect of the AAR ruling was emphasized, and the Court underscored that the Review Petitioners had not availed the proper appellate remedy timely. The writ jurisdiction was invoked appropriately where jurisdictional errors were alleged. Treatment of Competing Arguments: The Review Petitioners argued for alternate remedies and challenged jurisdiction. The Court found these arguments misplaced and inconsistent with the statutory scheme and judicial precedents. Conclusions: The binding nature of the AAR ruling was upheld, and the Review Petitioners were not entitled to circumvent the prescribed remedies. Issue 4: Impact of Laboratory Reports and Technical Evidence on Classification Legal Framework and Precedents: Classification under Customs Tariff often depends on technical parameters such as moisture content and processing of goods. Expert laboratory reports are admissible and relevant evidence in determining the correct classification. Court's Interpretation and Reasoning: The Court placed significant reliance on the laboratory reports from Doctor's Analytical Laboratories Pvt. Ltd., which consistently confirmed the moisture content below 10%, classifying the goods as roasted arecanuts under Chapter 21. The Court found no contrary credible evidence. Key Evidence and Findings: The laboratory reports dated 20.12.2022 and similar reports in related writ petitions were pivotal in affirming the classification. Application of Law to Facts: The Court applied the technical findings to the tariff classification rules and the parameters fixed by the AAR, concluding that the goods fell within the scope of Chapter 21. Treatment of Competing Arguments: The Review Petitioners disputed the laboratory findings and classification parameters, but these contentions were rejected as already considered and found lacking. Conclusions: The laboratory evidence supported the classification under Chapter 21, and the Court accepted this as determinative. Issue 5: Effect of Prior Judicial Pronouncements and Finality of the Classification Issue Legal Framework and Precedents: Judicial pronouncements by coordinate Benches and the Supreme Court bind subsequent proceedings unless set aside or overruled. Finality of judgments is a cornerstone of judicial discipline. Court's Interpretation and Reasoning: The Court noted that the classification issue has attained finality through multiple judicial pronouncements, including the dismissal of the Department's Special Leave Petition by the Supreme Court and the decision of a coordinate Bench of this Court in identical matters. Key Evidence and Findings: The Court extracted relevant paragraphs from the order dated 04.10.2022 (Bombay High Court), the judgment dated 06.12.2024 (this Court), and the Supreme Court order dated 08.11.2024, all affirming the classification under Chapter 21. Application of Law to Facts: The Court applied the principle of finality and binding precedent to reject the Review Petitioners' repeated attempts to challenge the classification. Treatment of Competing Arguments: The Review Petitioners' reliance on alternate decisions and attempts to reopen the issue were held to be impermissible. Conclusions: The classification issue is conclusively settled and not open for reconsideration in review proceedings. 3. SIGNIFICANT HOLDINGS "Therefore, even on this count, the said respondents cannot contend otherwise." "Looked from any angle, the ruling dated 31st March 2017 passed by the AAR in the petitioner's own case is binding under Section 28 J(1) on the petitioner and the respondents as there being no change in law post the said decision and the said decision having been accepted by the respondents in the absence of any further challenge before the higher forum." "A review petition has a limited purpose and cannot be allowed to be 'an appeal in disguise.'" "An error on the face of record must be such an error which, mere looking at the record should strike and it should not require any long-drawn process of reasoning on the points where there may conceivably be two opinions." "The classification of the goods under Chapter 21 of the Customs Tariff Act, 1975, as upheld by the Authority for Advance Rulings and this Court, is correct and binding." "The impugned order passed without jurisdiction is quashed and set aside." "The Review Petitioners are not entitled to reargue the questions which have already been addressed and decided." "The scope of review being very limited, we are not inclined to delve into the grounds of review which were already dealt with by us in the impugned judgment." "The detained goods are perishable in nature, and the Review Petitioners are directed to comply with the direction issued in the impugned judgment forthwith."
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