2011 (10) TMI 181 - AT - Customs

Tribunal Emphasizes Expert Opinion in Customs Classification: Importance of Chartered Engineer's Input

The Tribunal directed the original adjudicating authority to redecide the classification issue of threaded rods of iron and steel after obtaining the ... Validity of power of Commissioner (Appeals) to remand the matter back to Adjudicating Authority – matter relates to classification of goods – Held that:- Without going into the legal question as to whether the Commissioner (Appeals) has powers or not and by taking into consideration the fact that the Tribunal can itself remand the matter, we find it fit to direct the original Adjudicating Authority to re-decide the issue of classification after obtaining the Chartered Engineer's opinion. Issues involved:Classification of goods - Threaded rods of iron and steel under CTH 84313990.Analysis:Classification of goods:The Commissioner (Appeals) remanded the matter to the original adjudicating authority due to a dispute over the classification of the threaded rods of iron and steel. The adjudicating authority classified the goods as parts of Dumping machines under CTH 84313990 without providing expert opinion or evidence. The appellant submitted a certificate from a Chartered Engineer stating that the threaded rods were not parts of a machine and should be sold as per requirement. The Commissioner (Appeals' decision to remand the matter was based on the lack of expert opinion and the need for a correct classification. The Revenue contended that the Commissioner (Appeals) did not have the power to remand the matter. However, the Tribunal found that the issue was technical and required expert opinion. The Tribunal directed the original adjudicating authority to redecide the classification issue after obtaining the opinion of a Chartered Engineer. The Tribunal rejected the Revenue's appeal, emphasizing the importance of obtaining expert opinion for correct classification. The original adjudicating authority was instructed to decide the matter promptly, preferably within one month, due to the involvement of live consignment.This judgment highlights the significance of expert opinion in the classification of goods for customs purposes. It underscores the need for a thorough examination of technical issues and the importance of obtaining expert advice to ensure the correct classification of goods under the relevant tariff headings. The decision also clarifies the authority's power to remand matters for reevaluation based on technical considerations, emphasizing the objective of arriving at a precise classification in accordance with the applicable regulations and guidelines.