2014 (6) TMI 713 - AT - Customs

Tribunal grants waiver of pre-deposit for imported marble slabs under specific tariff heading.

USHA INTERNATIONAL Versus COMMISSIONER OF CUSTOMS, PATNA

The Tribunal granted the applicants a waiver of pre-deposit of duty for imported marble slabs, amounting to Rs. 8,13,878.63, under Notification No. 4/2006 ... Waiver of pre deposit - marble slabs and tiles - Benefit of exemption under Notification No. 4/2006 and 78/2006-Cus. - revenue contended that marble slabs are classifiable under 6802 21 90 which is not covered under the benefit of exemption notification. - Held that:- applicants have declared their product as polished marble slabs and classified them under 6802 21 10 and claimed the benefit of Notification No. 4/2006 and 78/2006-Cus. as amended. We find that the Notification No. 4/2006 gives benefit to marble slabs and tiles. The Notification specifically allows benefit of exemption to marble slabs. In these circumstances we find that the applicants are able to make out a prima facie case for total waiver of pre-deposit - Stay granted. Issues: Classification of imported marble slabs under exemption notification.Analysis:The case involved an application for waiver of pre-deposit of duty amounting to Rs. 8,13,878.63 by the applicants who imported marble slabs during a specific period. The applicants claimed to have classified the goods under a particular tariff heading and sought the benefit of exemption under Notification No. 4/2006 and 78/2006-Cus. The department, however, raised a demand against the applicants, contending that the marble slabs should be classified differently, thereby denying them the benefit of the said notifications.Upon examination, it was noted that the applicants had declared their product as polished marble slabs and classified them under a specific tariff heading, claiming the benefit of the exemption notifications. The Tribunal found that the Notification No. 4/2006 specifically provided exemption to marble slabs and tiles. As the applicants had correctly classified their goods and were eligible for the exemption under the notification, the Tribunal concluded that the applicants had made out a prima facie case for a total waiver of pre-deposit. Consequently, the pre-deposit of all dues adjudged was waived, and the recovery thereof was stayed during the pendency of the appeal.The Tribunal's decision hinged on the correct classification of the imported marble slabs and the eligibility of the applicants for exemption under the relevant notifications. By analyzing the contentions of both parties and the provisions of the notifications, the Tribunal determined that the applicants were entitled to the benefit of exemption for their imported marble slabs. The waiver of pre-deposit and the stay on recovery of dues reflected the Tribunal's recognition of the applicants' prima facie entitlement to the exemption, pending the final outcome of the appeal.