TMI Blog2019 (2) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... 75/2008 - Order No..FO/A/76669/2018 - Dated:- 24-9-2018 - Shri P. K. Choudhary, Hon ble Judicial Member And Shri Bijay Kumar, Hon ble Technical Memebr For the Appellant(s) : Shri H. K. Panday, Advocate For the Respondent(s) : Shri S. Guha, A.C. (AR) PER SHRI P. K. CHOUDHARY : The appellant is in appeal against the impugned Order-in-Appeal No. KOL/CUS/CKP/111/2008 dated 11.04.2008, wherein the ld. Commissioner (Appeals) has upheld the order passed by the primary adjudicating authority confirming demand of ₹ 1,11,335/- against the appellant. 2. The brief facts of the case are that the appellant has imported two consignments of Raw Jute Cutting (BTC) from Bangladesh and they filed two Bills of Entry for home consumption which are as under: (i) B/E No. 000015/16/06 dated 02.01.2006 (ii) B/E No. 003855/16/2005 dated 03.12.2005 The appellant sought clearance of the goods so imported i.e. Raw Jute. Claiming the classification of the goods under Tariff subheading 530310.10 of CTA 75 being Raw Jute @5% under Notification No. 21/2002 Cus dated 1.3.2000 50% off on production of SAPTA Certificate in terms of Notification No. 105/99-Cus dated 10.08.1999 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... feel it appropriate to reproduce the relevant extract from the aforesaid judgement, which are as follows : 5.2 He has further referred to the meaning of cuttings mentioned in HSN as butt ends of the fibre, which are cut off and marketed separately. He submits that in the trade parlance, as is evident from the website and from other jute customers and traders, 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. 105/9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad observed that jute plant is of 2 metre or more in height; the fibre is stripped off after retting the plant and the whole fibre so collected, is the raw jute bast fibre . It is not continuous throughout length either content wise or quality wise. The lower portion is stronger and contains more fibre. The fibre contents both qualitatively and quantitatively becomes less towards top, hence, the 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 303.90 was meant for other . 6.8 It is the claim of the appellant that the sub-heading 5303.10 includes only raw jute and other textile bast fibres, and not the processed ones. The processed fibres and wastes were correctly classifiable under the subheading 5303.90. It is their submission that when the raw jute is cut into different length, it cannot be considered as processed one, but continues to remain as raw jute only, but of cutting grade. It is their further contention that the jute cuttings which emerge during the course of processing of raw jute, are covered under this residuary entry. 6.9 We find that the claim on the classification of the goods by the appellant under the old tariff entry is not disputed by the revenue. The revenue s contention is that after restructuring of the said tariff entry under the new 8 digit code, the subheading 5303.10 is further divided into two., namely, 5303 10 10, which covered jute, raw or retted and entry 5303 10 90 for other . Similarly, the residuary entry 5303.90 has also been divided into two, namely, 5303 90 10 jute cutting and 5303 90 90 for other . In other words, the contention of the revenue is that when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of raw fibers are considered, under category II the processed goods are covered and under category III, waste materials of the fibers have been included. The meaning of cuttings appears under category I and it is referred in the contest while explaining different types of raw fibers that are covered under the said sub-heading. It is explained to mean the butt-ends of the fibers which are cut off and marketed separately. 6.13 This meaning of cuttings mentioned under the category of raw fibers, in our opinion, has been misunderstood by the authorities below. The authorities had observed that on adopting the meaning of cuttings , to the raw jute of cutting grade imported by the Appellant, the same are classifiable under Chapter Heading 5303 90 10 of restructured eight digit tariff entry. During the course of arguments, the ld. AR for the Revenue while referring to the information contained in the websites submitted that varieties of raw jute are available in the market including the jute cuttings that are bought and sold in the market, hence the items imported by the Appellant are classifiable as jute cuttings under CSH 5303 90 10 being the specific entry. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, therefore the benefit of the said notification automatically flows as it continued to be applicable to raw jute only and we do not see any necessity to delve into this aspect as it would be a mere academic exercise. 6.18 Further it is pleaded on behalf of the Appellant that even though on the issue of valuation and admissibility of Notification No. 105/99-Cus., dated 10-8-1999, the adjudicating authority had decided the issue in their favour, in absence of a challenge to the said order either by the appellant or the revenue, the order of the ld. Commissioner (Appeals) in remanding these issues to adjudicating authority, for deciding the same afresh, is de hors the record/appeal filed before him, and hence bad in law. We agree with the contention of the appellant on this aspect also. In the result, the impugned orders passed by the ld. Commissioner (Appeals) are set aside and all the three appeals are allowed with consequential relief, if any admissible, as per law. 8. In view of the above, we hold that the appellant has appropriately classified the imported goods i.e. raw jute cutting grade under Tariff Heading 53039010 of the Customs Tariff Act, 1975 and has right ..... X X X X Extracts X X X X X X X X Extracts X X X X
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