TMI Blog2021 (11) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... ended, the tariff accords recognition of these as cereals to enable national policy to be determined accordingly and within the enumerations under the relevant subheading. Nonetheless, sweet corn , though a fresh cereal thereby, is further excepted from such coverage by the general notes pertaining to chapter 10 in the Explanatory Notes to the Harmonized System of Nomenclature (HSN). Consequently, sweet corn is not cereal for the purposes of exclusion from chapter 12 of the First Schedule to Customs Tariff Act, 1975. The permission envisaged under the Policy on Seed Development, 1988, requiring appropriate clearance by the competent authority empowered by the Plant Quarantine (Regulation of Imports into India) Order, 2003, has als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch 2002 (at serial no 8) and in notification no. 12/2012 dated 17th March 2012 (at serial no 42). Specifically, the grievance of the appellant arises from the order for recovery of differential duty of ₹ 2,83,09,537/- under section 28 of Customs Act, 1962, along with applicable interest under section 28AB of Customs Act, 1962, upon re-assessment of 26 bills of entry filed for import of the impugned goods, valued at ₹ 3,79,88,095/-, between August 2009 and August 2013. In addition, imposition of penalty of ₹ 75,00,000/- under section 112 of Customs Act, 1962 on the finding that the imported goods are liable for confiscation under section 111(m) of Customs Act, 1962 and imposition of penalty of ₹ 25,00,000/- under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceed to decide the issue. 4. Learned Counsel for the appellant submits that the imported goods are sweet corn intended for sowing and that the description of maize (corn) proposed by the customs authorities is not the most appropriate. It was further pointed out that even if exclusionary references indicating chapter numbers are to be taken as rules of classification, the specific coverage of note 3(a) discards includability among cereals as proposed by the customs authorities. It was also argued that the very same Explanatory Notes to the Harmonised System of Nomenclature (HSN), of which subheading note For the purposes of subheading 1005.10, the term seed covers only maize (corn) regarded by the competent national authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1211. Therefore, I find that as per Note 3 to Chapter 12 read with Rule 3 (a) of the General Rules for the Interpretation of the First Schedule to the Customs Tariff Act, 1975, Cereals which are classifiable under Chapter 10, will be excluded from the purview of Chapter 12 even if they are used for sowing purpose. It is an established fact that 'maize corn' is 'cereal' and maize corn seeds, even if they are used for sowing, will be classified in CTH 10 not under CTH 1209. is a clear and unambiguous exposition of the notes to the chapter and is in accord with the General Rules for the Interpretation of the Harmonized System. 6. It would appear that the general coverage of seeds for sowing corresponding to hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... termined accordingly and within the enumerations under the relevant subheading. Nonetheless, sweet corn , though a fresh cereal thereby, is further excepted from such coverage by the general notes pertaining to chapter 10 in the Explanatory Notes to the Harmonized System of Nomenclature (HSN). Consequently, sweet corn is not cereal for the purposes of exclusion from chapter 12 of the First Schedule to Customs Tariff Act, 1975. 8. The permission envisaged under the Policy on Seed Development, 1988, requiring appropriate clearance by the competent authority empowered by the Plant Quarantine (Regulation of Imports into India) Order, 2003, has also made it abundantly clear that the seeds are intended for sowing. While not sufficing for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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