2001 (10) TMI 967 - AT - Customs

Galangal Roots: Directly Consumable and Freely Importable under ITC Classification

The Tribunal remanded the case to determine whether galangal roots are directly consumable without processing, emphasizing the need for proper assessment. ... EXIM Policy, 1992-97 - Medicine - Precedent and practice Issues:1. Appeal filed by Commissioner of Customs and Central Excise, Trichy against the order in Appeal No. 4/2001 (CUS)(PNV) and Order in Appeal No. 3/2001 TRY(CUS)PNV.2. Classification of galangal roots as directly consumable and import restrictions.3. Clearance of galangal roots without a license by Chennai Custom House.Analysis:1. The appeals were filed by the Revenue challenging the order that classified galangal roots as directly consumable. The Commissioner of Customs, Trichy argued that galangal roots are consumable directly without much processing and should not be freely importable without the required license. The Commissioner sought to set aside the orders passed by the Commissioner (Appeals) and requested the Tribunal to uphold the original orders. The Tribunal noted the lack of findings by the Commissioner (Appeals) on whether galangal roots are directly consumable, and remanded the matter for a fresh consideration to determine the consumability of the item without processing. The Tribunal emphasized the need for a proper assessment of whether galangal roots can be directly consumed and directed the Commissioner (Appeals) to consider evidence regarding the importation of similar items in other ports. The appeal was allowed by remand.2. The Commissioner (Appeals) analyzed the case on merits regarding the direct consumability of galangal roots and the clearance without a license by Chennai Custom House. The appellant provided evidence from Indian Materia Medica and the Chemical Examiner of the Customs House Laboratory, Chennai, supporting the medicinal use of galangal roots. The Commissioner (Appeals) found that galangal is considered as an indigenous medicine consumed directly or as a tincture, not as consumer goods in common parlance. Additionally, the appellant presented Bills of Entry showing the clearance of galangal roots by Chennai Custom House as freely importable items. The Commissioner (Appeals) concluded that the lower authority's order was not sustainable based on the evidence presented, and upheld the appeal.3. The judgment highlighted that galangal roots, falling under ITC Classification No. 121120.03, can be imported freely according to the ITC (HS) classification of Export and Import Hand Book 92-97. The item was not listed under restricted items, and the Commissioner of Customs, Trichy did not challenge the report of the Chemical Examiner supporting the medicinal nature of galangal roots. The judgment emphasized that a small Custom House like Tuticorin should follow the practices of major Custom Houses unless the practices are clearly incorrect. The judgment rejected the appeal filed by the Revenue, upholding the order passed by the Commissioner (Appeals), Chennai based on the legal and proper classification of galangal roots as directly consumable and freely importable.This comprehensive analysis covers the issues raised in the legal judgment, providing a detailed overview of the arguments presented and the decisions made by the authorities involved.