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TMI Blog2024 (5) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... s duty, interest and penalty. 2. Learned counsel for the appellant pointed out that the appellant had imported broom sticks which were classified by the appellant under customs tariff heading 9603 1000. The appellant claimed IGST exemption under Sr. no. 144 of Notification No. 02/2017 dated 28.06.2017 prescribing NIL IGST rate under Sr. no. 144 of the notification. 2.1. The revenue was of the opinion that the said goods should be classified under Customs Tariff heading 9603 1000 under Sr. no. 260 of Notification No. 01/2017 dated 28.06.2017 attracting 5% IGST. SR no. 144 of Notification No. 02/2017-IGST dated 28.06.2017 reads as follows: Sr. No. Chapter / Heading / Sub-heading / Tariff item Description of Goods 144 9603 Muddhas made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her argued that the proceedings have been initiated against the appellant in the course of audit conducted by Customs revenue audit. On the basis of said audit notice was issued to the appellant raising demand of duty, interest and imposition of penalty. Learned counsel further relied on section 99A of the Customs Act, 1962 with relates to the audit. The said section reads as follows: "Section 99A. Audit - The proper officer may carry out the audit of assessment of imported goods or export goods or of an auditee under this Act either in his office or in the premises of the auditee in such manner as may be prescribed. Explanation: For the purposes of this section, "auditee" means a person who is subject to an audit under this Section a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t exemption benefit is available and therefore the claim thus same. She argued that in these circumstances penalty under section 114A cannot be imposed. 3. Learned AR relied on the impugned order. 4. We have considered rival submissions. We find that it is a fact that the product was described as broom sticks in the bill of entry. It is notice that the Commissioner (Appeals) in his order has recorded the entry 260 of Notification no. 1/2017-integrated tax dated 28.06.2017 and Sr. no. 144 of Notification no. 2/2017-integrated tax dated 28.06.2017, as part of the asseesse submissions. Thereafter, the Commissioner (Appeals) has recorded as follows : - 5.2 I find that that the appellant in their appeal memorandum have not contested the clas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ws : Sr. No. Chapter / Heading / Sub-heading / Tariff item Description of Goods 144 9603 Muddhas made of sarkanda, Brooms or brushes, consisting of twigs or other vegetable materials, bound together, with or without handles In this background, we find the impugned order does not take care of the primary claim of the appellant that the goods are also classifiable under the description. "Muddhas made of sarkanda, Brooms or brushes, consisting of twigs or other vegetable materials, bound together, with or without handles" Form the above, it is apparent that the main issue has not been dealt with by the Commissioner (Appeals) In this circumstances, we alert with no option but set aside the impugned order and remand the matter back to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd September, 2017 to mention as follows : "260 9603 [other than 9603 10 00] Broomsticks [other than brooms consisting of twigs or other vegetable materials bound together, with or without handles]" 6.1 It is to be considered that Broomsticks are known to be primarily of two types, one where cleaning part consists of usually stiff fibers made of plastic material framed with a long handle and other Broomsticks made by using twigs or other vegetable materials which are Broomsticks made with vegetable material. Illustrative photos of two types of Broomsticks are placed below : Coconut Broomstick Plastic Broomstick 6.2 It appears from the notification reproduced above that initially all Broomsticks were classified under Serial No. 260 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ISTOPLAST PRODUCTS PVT LTD. The observations which are relevant for the purpose of deciding classification are as follows: "6.1 We note that Broom stick is a cleaning tool consisting of usually stiff fibres (made of materials such as plastic) attached to, and roughly parallel to, a cylindrical handle, The broomstick is thus a variety of brush with a long handle. It is commonly used in combination with a dustpan for cleaning floors etc. 6.2 We further find in the GST Tariff that the heading 9603 which seems to be closer of the product in question, read as - Brooms, Brushes (Including Brushes Constituting Parts of Machines, Appliances Or Vehicles), Hand Operated Mechanical Floor Sweepers, Not Motorised, Mops And Feather Dusters, Prepare ..... X X X X Extracts X X X X X X X X Extracts X X X X
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