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TMI Blog2018 (11) TMI 1306X X X X Extracts X X X X X X X X Extracts X X X X ..... 05 The appellant sought clearance of the goods so imported i.e. Raw Jute (BTC). The Bills of Entry were filed for assessment of import duties on the goods imported from Bangladesh. Those were classified under Chapter Tariff Heading 5303.1010 as per declaration supported by relevant invoices etc. the duty liability was Basic Customs Duty @ 2.5% E.Cess on BCD (vide Notification No.21/02-Cus read with 105/99 Cus) for which SAPTA certificates were produced by the importer. The appellant paid duty on the basis of assessment made by the assessing officer. Thereafter, the officers of Petrapole Land Customs Station duly examined the goods physically and allowed clearance of the goods. 3. Subsequent to the clearance of this goods, a show-cause notice was issued proposing to classify the raw jute cutting under subheading No.5303.9010 of Customs Tariff Act, 1975 and a show-cause notice was issued under Section 28 (2) of the Customs Act, 1962. After due process of adjudication, a demand of Rs. 1,68,069/- was confirmed. 4. Against this order, the appellant filed appeal before the Commissioner (Appeals) and the same was also confirmed and the order of the primary adjudicating authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, jute cuttings (BWCA), stands for raw jute cutting of Bangla White Cutting Grade A, which could have cutting range upto 10"; Jute cuttings are low in quality but have commercial value for the paper carded yarn and other fibre processing industry. The lower part is hard fibre, which is called jute cuttings in Bangladesh and India. Regarding the exemption claimed by the Appellant, he submits that the classification cannot be decided by virtue of the exemption Notification. It is his plea that when there is a specific entry for classification for the 'jute cuttings' under the new eight digit code, the classification cannot be made taking recourse to earlier Tariff Heading 5303.10 under six digit code of classification. Regarding the issue of determination of assessable value and benefit of exemption Notification No. 105/99-Cus., dated 10-8-1999, the ld. Commissioner has rightly remanded the matter for reverification to the adjudicating authority, as he has power to modify/annul the order of the lower authority in the manner he likes. 6.1 Heard both sides and perused the records. The principal question for determination is: whether the imported goods described as 'raw jute (BWCB/BT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lower portion is costly and more in demand for better commercial use. Further, referring to the meaning of 'cuttings' in the HSN he has observed that 'cuttings' is defined as the butt ends of the fibre which are cut off and marketed separately. And in the present case the imported goods are described as cuttings and the value is admittedly at higher side in comparison to normal jute fibres. 6.5 The ld. Commissioner (Appeals) has endorsed the aforesaid reasoning and concluded that the imported goods are rightly classifiable under CTH 5303 90 10 and not under 5303 10 10 CTA, 1975. 6.6 Before entering into the discussion on the correct classification of the imported raw jute, under the new eight digit tariff entry, it is necessary for a better understanding, to compare the old and new tariff entry. The old Tariff entry reads as below : "Heading Sub-heading Description of article Rate of duty Standard Preferential Areas 53.03 Jute and other textile bast Fibres (excluding flax, true Hemp and ramie), raw or Processed but not spun; tow and waste of these fibres (including yarn waste and Garneted stock) 5303.10 Jute and o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssifiable under the specific heading 5303 90 10. 6.10 Thus, the moot point, precisely in this case is, whether, after the introduction of 8 digit classification, the raw jute of cutting grade, imported earlier by the appellant, assesses under chapter sub-heading 5309.10, would continue to be classifiable under the restructured comparable entry, namely, 5303 10 10 or be shifted to the new entry 5303 90 10. 6.11 To advance their argument, the ld. AR for the revenue, heavily relied upon the meaning of 'cuttings' explained in the HSN. The explanation under Chapter Heading 53.03 reads as : "The Heading covers : (I) Raw fibrous materials (in stalks, not yet retted or stripped) : retted fibres; stripped fibres (extracted by machine), i.e. the fibres, sometime 2 m or more in length, as extracted from the plant by retting and stripping : "cutting" (the butt ends of the fibres which are cut off and marketed separately). However, vegetable materials, which when raw or in certain forms fall in Chapter 14 (for example, stalks of broom), are classified here only when they have undergone treatment indicating their use as textile materials (e.g. when they have been crushed, carded or combed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e paper, carded yarn, and other fiber processing industries; the lower part is hard fiber which is called jute cuttings in Bangladesh and India (commonly called jute butts or jute tops elsewhere). It further mentions that available raw jute cutting grades are as follows :- Bangla Tossa BTCA - Bangla Tossa Cuttings A BTB - Bangla Tossa Cuttings B Bangla White BWCA - Bangla White Cuttings A BWCB - Bangla White Cuttings B 6.15 Therefore, it is clear from the above that the raw 'jute cuttings' are of different grades and are available in the market. It supports the contention of the Appellant that what they have imported are raw jute cuttings of different grades. No contrary evidence has been produced by the Revenue to establish that what the Appellant had imported, were not raw jute of cutting grades, but processed 'jute cuttings'. 6.16 In view of above, we have no hesitation to arrive at the conclusion, keeping in view the legislative history and practice of assessment under the old tariff entry, that under the restructured eight digit new tariff entry, the raw jute of cutting grades are not classifiable under CSH 5303 90 10, as the 'jute cuttings' mentioned in the said e ..... 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