CESTAT Chennai: Ruling on Imported Polished Marble Slabs Classification

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the applicants in a case concerning the classification and duty applicability of imported polished marble slabs. The tribunal found that the Ministry's clarification confirmed the eligibility of polished marble slabs under a specific Customs Tariff Heading for exemption under Notification No. 4/2006-CE. It was noted that the differing classifications at different customs locations did not indicate an intent to evade duty payment. As a result, the tribunal waived the pre-deposit of duty, interest, and penalty, staying the recovery pending the appeal's disposal.

---

---

Issues: Classification of imported marble slabs under Customs Tariff Heading, applicability of concessional rate of CVD, imposition of duty, interest, and penalty, clarification on exemption entry, intention to evade payment of duty, waiver of pre-deposit of dues.

In this judgment by the Appellate Tribunal CESTAT CHENNAI, the issue revolved around the classification and duty applicability concerning imported "Polished (Honed) Marble Slabs." The applicants imported the slabs and classified them under Customs Tariff Heading No. 68022110 under a concessional rate of CVD. However, a show cause notice was issued proposing a demand of duty, interest, and penalty, alleging misclassification under C.T.H. No. 68022190 and denying the concessional rate of CVD under Notification No. 4/2006-CE. The adjudicating authority confirmed the duty demand and imposed penalties on the applicants.

Upon hearing both sides, it was noted that the Ministry's clarification dated 16.03.12 specified that polished marble slabs under C.T.H. No. 68022190 were eligible for the benefit of exemption under Notification No. 4/2006-CE. The applicants contended that they correctly cleared the slabs at Chennai Customs under C.T.H. No. 68022110, while at Mumbai Customs, the goods were classified under C.T.H. No. 68022190, leading to duty payment under protest. The tribunal observed that the Commissioner's finding of suppression based on the payment under protest lacked examination of the records.

The LD AR argued that the exemption under Notification No. 4/2006-CE applied to marble slabs under C.T.H. No. 25151220, not to polished slabs under C.T.H. No. 68022190. He claimed that the applicants' differing classifications at different customs locations indicated an intent to evade duty payment. However, the tribunal found the Ministry's clarification crucial, stating that polished marble slabs under C.T.H. No. 68022190 were indeed eligible for the exemption under the notification.

Considering the submissions, the tribunal acknowledged that the applicants paid duty under protest at Bombay customs. Consequently, a prima facie case for the waiver of pre-deposit of entire dues was established. Thus, the pre-deposit of the duty, interest, and penalty was waived, and the recovery stayed pending the appeal's disposal. Ultimately, the stay petitions were allowed, and the order was dictated and pronounced in the open court.

---