2018 (6) TMI 1258 - AT - Customs

Tribunal rules in favor of appellant on 'Marble Slabs' classification, upholding concessional duty rate eligibility.

The Tribunal ruled in favor of the appellant in a case concerning the classification of imported 'Marble Slabs' under the Customs Tariff Act. The ... Classification of imported goods - Marble Slabs - Benefit of N/N. 4/2006-CE dated 01.03.2006 and N/N. 78/2006-Cus dated 08.08.2006 - Whether the goods are classifiable under Tariff Item No. 68022190 of CTA or under CTH 68022110? - Held that:- The Ministry of Finance, Department of Revenue vide DOF No.334/1/2012-Tru dated 16.03.2012 clarified that the benefit of CVD is available to Polished Marble Slabs of Chapter sub-heading No.6802 21 90 under N/N. 4/2006-CE. It is also clarified that the relevant exemption entry is being amended to specifically include Chapter sub-heading No.6802 21 90 vide N/N. 12/2012-Central Excise dated 17.03.2012. The N/N. 4/2006-CE dated 01.03.2006 extended concessional rate of CVD @ ₹ 30/- per square mtr. on marble slabs and it is classified under Chapter sub-heading No. 68022110. Appeal allowed - decided in favor of appellant. Issues: Classification of imported goods under Customs Tariff Act, 1975; Benefit of Notification No. 4/2006-CE dated 01.03.2006; Additional customs duty; Central Excise Education Cess; Central Excise Secondary and Higher Education Cess; Customs Education Cess; Customs Secondary and Higher Education Cess; Additional Customs duty to Countervail Local Taxes; Interest; Penalty under Section 112 of the Customs Act, 1962.Classification of Imported Goods:The appellant imported 'Marble Slabs' and classified them under Customs Tariff Heading No. 6802 21 10, availing the benefit of Notification No. 4/2006-CE dated 01.03.2006, which granted a concessional rate of duty. The Show Cause Notice demanded duty under a different classification, denying the concessional rate. The Ministry of Finance clarified that polished marble slabs of Chapter sub-heading No. 6802 21 90 were eligible for the benefit of the said notification. The issue was settled by a previous decision, confirming the eligibility of polished marble slabs under the mentioned notification.Benefit of Notifications and Duty Demands:The appellant's classification under Chapter sub-heading No. 6802 21 10 was challenged, leading to a demand for additional customs duty and other cess charges. The Adjudicating Authority confirmed the duty demands, leading to penalties under Section 112 of the Customs Act, 1962. The Commissioner (Appeals) upheld the duty demands but set aside the penalties imposed on the appellants.Legal Interpretation and Precedents:The appellant argued that the goods were initially imported and classified under a specific heading, which was accepted by the department during assessment. The appellant relied on Notification No. 4/2006-CE to support their classification. The legal representatives for both sides reiterated their positions, with the appellant citing various decisions to support their case.Final Decision:The Tribunal found in favor of the appellant, allowing the appeal based on the settled legal position and the clarification provided by the Ministry of Finance. The decision highlighted that polished marble slabs and tiles falling under C.T.H. No. 68022190 were eligible for the concessional rate of duty under the notification. Consequently, the duty demands were set aside, and the appeal was allowed.Conclusion:The judgment addressed the classification of imported goods, the applicability of notifications for concessional duty rates, duty demands, penalties under the Customs Act, 1962, legal interpretations, and settled legal precedents. The decision favored the appellant based on the specific classification of polished marble slabs under the relevant tariff heading and the eligibility for the benefit of the notification providing concessional rates of duty.