Exported goods cannot sustain duty demand; tariff classification dispute left open for separate adjudication

Duty demand on goods already exported could not be sustained because the liability dispute was premised on a tariff classification issue that did not alter the present result. As the product on which duty was demanded had been exported, the demand was unsustainable in those proceedings. The classification question between the two tariff sub-headings was not examined on merits and was left open for determination in appropriate proceedings.

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Issues: Whether the duty demand could be sustained on goods which were exported by the appellant, and whether the product classification dispute required adjudication in the present proceedings.

Analysis: The demand was founded on a classification dispute between two tariff sub-headings. It was undisputed that the product on which duty was demanded had been exported by the appellant. In that situation, the classification dispute did not affect the present liability, and the demand could not be upheld on exported goods. The classification question was therefore not decided on merits and was left open for determination in appropriate proceedings.

Conclusion: The duty demand was unsustainable for the exported goods and the appeal was allowed.

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