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of <h1>Tribunal overturns order on customs duty dispute, emphasizing fair classification application</h1> The tribunal allowed the appeals and set aside the impugned order, emphasizing the importance of non-discriminatory application of classification and the ... Classification of Hard Disk Drives - Denial of benefit of exemption from additional duties of customs beyond 6% - hard disk drives - N/N. 6/2006-CE dated 1st March 2006 (at serial no. 17) and N/N. 12/2012-CE dated 18th March 2012 (at serial no. 255) - HELD THAT:- The challenge to settled law by relying on the decision of the Hon’ble Supreme Court in re Radhasaomi Satsang [1991 (11) TMI 2 - SUPREME COURT] does not appear to be correct insofar as commodity tax is concerned. Assessment to duties of customs are a function of rate of duty and value; the former is determined from the First Schedule to Customs Tariff Act, 1975. The design of the Schedule encompassing all products within the tariff enumeration does not offer scope for traversing beyond the ninety eight chapters making it evident that certainty of fitment is one of the characteristics of classification for smooth operation of international trade - the settled classification may be unsettled only by argument of inapplicability owing to distinguishable nature of the product. Such argument has not been put forth in the contentions of Learned Authorized Representative. The judicial propriety requires non-discriminatory application of classification so held and notwithstanding the continuing cavil of Revenue about the eligibility for concessional duty. Appeal allowed. Issues:- Interpretation of exemption notification for additional customs duties on hard disk drives- Application of settled law and judicial precedents in customs classification disputes- Relevance of expert opinion in customs classification matters- Validity of government communication in determining eligibility for customs duty exemptionsInterpretation of Exemption Notification:The dispute in the appeal revolves around the intent of customs authorities to deny M/s Lenovo India Pvt Ltd the benefit of exemption from additional customs duties on hard disk drives beyond 6%. The issue arises from the adoption of a specific tariff item for 'external/portable hard disk drives' instead of the one claimed by the appellant. The order under challenge confirmed a differential duty on imports made by the appellant between March 2011 and March 2013. The appellant argued that previous tribunal decisions and a government opinion supported their eligibility for the exemption based on the nature of the product involved.Application of Settled Law and Precedents:The appellant relied on various tribunal decisions, including Commissioner of Customs v. Supertron Electronics P Ltd, affirmed by the Supreme Court, to support their claim for exemption. These decisions established that 'external hard disc drives' are the same as 'hard disk drives' entitled to the exemption notification. The appellant emphasized the importance of settled law in determining customs classification disputes, while the authorized representative for the revenue contested the applicability of the principle of res judicata in tax matters.Relevance of Expert Opinion:The authorized representative challenged the relevance of expert opinions relied upon in tribunal decisions, arguing against discarding judicial discipline and disagreeing with coordinate benches of the tribunal. However, the tribunal found insufficient merit in the revenue's arguments to disregard the expert opinions and established decisions in similar matters.Validity of Government Communication:The revenue contested the authority of a government communication opining on the lack of distinction between the impugned goods and those covered by the exemption notification. The tribunal highlighted the importance of certainty in customs classification for smooth international trade operations and criticized any discriminatory treatment based on personal biases or refusal to acknowledge judicial authority.In the end, the tribunal allowed the appeals and set aside the impugned order, emphasizing the importance of non-discriminatory application of classification and the need to follow settled law in customs disputes.
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