2006 (9) TMI 323 - AT - Customs

Tribunal upholds Ajwain's classification, reduces fines, challenges arbitrariness in customs case

The Tribunal upheld the classification of Ajwain under heading 091.040 as a restricted item, rejecting the appellant's argument that it should be ... Classifiaction Issues:Classification of Ajwain under ITC, Redemption fine and penalty imposition.Classification Issue:The dispute in the case revolves around the correct classification of Ajwain. The appellant claimed the classification under 091040.02 as 'Thyme/Bay leaves,' while the revenue classified it under heading 091040 as Ajwain, a restricted item. The appellant argued that the goods were Bay leave Thyme, not restricted items. The revenue contended that Thyme and Ajwain are distinct products based on literature. The Tribunal examined the descriptions of Ajwain and Thyme from the literature. Ajwain was described as an annual herbaceous plant bearing grayish-brown fruits, while Thyme was described as dried leaves and flowering tops with specific characteristics. The Tribunal concluded that both products are different, and since the goods were described as Ajwain in the Bill of Entry, upheld the classification under heading 091.040 as restricted.Redemption Fine and Penalty Issue:The appellant also challenged the arbitrariness in the imposition of redemption fine and penalty by the lower authority. The redemption fine ranged from 45% to 52%, and the penalty varied from 4% to 15% of the value of the goods. The Tribunal intervened and reduced the redemption fine to 25% of the declared value in the Bill of Entry and the penalty to 4% of the goods' value. The appeals were disposed of with the revised imposition of redemption fine and penalty.