1985 (12) TMI 367 - HC - Customs

High Court affirms stainless steel sheets classification under Indian Tariff Act, 100% duty upheld. Refund claims rejected.

Government of India Versus Prema Metal Works, Madras and Ors.

The High Court upheld the classification of imported goods as stainless steel sheets under Item 63(20-A) of the Indian Tariff Act, confirming the duty at ... - Issues Involved:1. Classification of imported goods under the Indian Tariff Act.2. Time-barred refund claims under Section 27(1) of the Customs Act.3. Jurisdiction of the High Court under Article 130 of the Constitution in the context of refund claims.Detailed Analysis:1. Classification of Imported Goods:The core issue was whether the goods imported by the respondents were 'Stainless Steel Plates and Sheets' under Item 63(20-A) or 'Cold rolled hoops and strips of stainless steel of 250 mm. width or more' under Item 63(14) of the Indian Tariff Act. If classified under Item 63(20-A), the duty payable was 100% ad valorem, whereas under Item 63(14), it was 40% ad valorem.The respondents/importers had actual users' licenses for stainless steel sheets and declared the goods as such before the Customs Authorities. The Revisional Authority found that the goods were commercially known and marketed as stainless steel sheets in both the country of shipment and importation. The Revisional Authority's findings, based on the invoices and declarations, were not contested by the importers in their affidavits.The High Court concluded that the goods were indeed stainless steel sheets, aligning with the Revisional Authority's findings. Consequently, the duty levied at 100% ad valorem under Item 63(20-A) was deemed appropriate.2. Time-Barred Refund Claims:The Assistant Collector rejected 48 out of 54 refund applications as time-barred under Section 27(1) of the Customs Act. The remaining six cases were considered on merits and also rejected.The High Court noted that the importers had declared the goods as stainless steel sheets and paid the duty accordingly. The importers' subsequent claims for refunds, arguing the goods were steel strips, were not supported by evidence. The Revisional Authority's findings, which were based on the commercial understanding of the goods, were upheld. The High Court found no reason to interfere with these findings.3. Jurisdiction Under Article 130 of the Constitution:The respondents/importers argued that the High Court could grant relief under Article 130 of the Constitution, notwithstanding the time-bar under Section 27(1) of the Customs Act. They contended that the excess duty was illegally collected, and the Revenue could not retain it in violation of Article 130.The High Court, however, did not find it necessary to delve into this argument. The Court held that since the goods were correctly classified as stainless steel sheets, the duty levied was appropriate, and the question of refund did not arise. Thus, the issue of jurisdiction under Article 130 was rendered moot.Conclusion:The High Court allowed the writ appeals, set aside the judgments in the writ petitions, and discharged the rules nisi. The Court upheld the classification of the imported goods as stainless steel sheets under Item 63(20-A) of the Indian Tariff Act, thereby affirming the duty levied at 100% ad valorem. The claims for refunds were rejected as time-barred and without merit. The Court did not find it necessary to address the jurisdictional argument under Article 130 of the Constitution.