2019 (4) TMI 489 - AT - Customs

Tribunal confirms seed classification for imported oil palm seeds

The Tribunal upheld the Commissioner (Appeals) decision in the case concerning the classification of imported germinated oil palm seeds. The goods were ... Benefit of N/N. 20/2006-Cus., dated 1-3-2006 at Sl. No. 52 - Import of consignment of “germinated oil palm seeds” - change in classification - classification under Tariff Heading No. 1209 29 90 of Customs Tariff Act, 1975 or not - Held that:- The Commissioner (Appeals) has passed the impugned order as per law with adequate deliberation regarding the provisions of notification and the Tariff Entries - appeal dismissed - decided against appellant. Issues involved: Classification of imported goods under Tariff Heading No. 1209 29 90, benefit of Notification No. 20/2006-Cus., dated 1-3-2006, assessment made in Bill of Entry Nos. 590494 and 591081, applicability of Notification No. 19/2006-Cus., dated 1-3-2006.Classification Issue Analysis:The appeals were filed against an order by the Commissioner of Customs (Appeals) regarding the classification of imported goods. The dispute revolved around the assessment made in Bill of Entry Nos. 590494 and 591081 for the consignment of 'germinated oil palm seeds.' The appellant claimed classification under Tariff Heading No. 1209 29 90 but the Assessing Officer classified the goods under 1207 20 10 with the benefit of Notification No. 19/2006-Cus., dated 1-3-2006. The Commissioner (Appeals) held that the product should be classified under Heading 1209 instead of 1207 based on the Explanatory Notes to HSN for better understanding. The Explanatory Notes clarified that Heading 1207 covers oil seeds for extraction of oil, while Heading 1209 covers seeds for sowing. Since the imported germinated oil palm seeds were for sowing purposes, they fell under Heading 1209.Notification No. 20/2006-Cus. Issue Analysis:Regarding the benefit of Notification No. 20/2006-Cus., dated 1-3-2006, the Commissioner (Appeals) ruled that the notification did not apply to the imported product as it excluded oil seeds used for sowing, which would typically fall under Heading 1209. Consequently, the benefit of this notification was deemed inapplicable to the appellants' product. However, the Commissioner granted the benefit of Notification No. 19/2006-Cus., dated 1-3-2006 to the appellants for the imported goods. The Tribunal, after hearing both sides and reviewing the submissions, found that the impugned order by the Commissioner (Appeals) was legally sound and well-considered in terms of the notification provisions and Tariff Entries. Therefore, the Tribunal upheld the decision and dismissed both appeals.In conclusion, the judgment addressed the classification of imported goods, the applicability of specific notifications, and the assessment made in the Bill of Entry. The decision was based on a thorough analysis of the relevant provisions and Explanatory Notes, ultimately upholding the Commissioner (Appeals) order.