TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal reinstates original classification for 'probiotic culture' in customs dispute</h1> <h3>Danisco (India) Pvt Ltd Versus Commissioner of Customs (Import) Air Cargo Complex, Andheri (E), Mumbai</h3> Danisco (India) Pvt Ltd Versus Commissioner of Customs (Import) Air Cargo Complex, Andheri (E), Mumbai - TMI Issues Involved:1. Classification of imported goods.2. Denial of concessional duty rate.3. Burden of proof on classification.4. Validity of reclassification by customs authorities.Summary:1. Classification of Imported Goods:The appeals challenge the re-assessment of imported 'probiotic culture' by substituting the declared classification under tariff item 3002 9030 with tariff item 2106 9099, leading to denial of the benefit of notification no. 12/2012-Cus and notification no. 50/2017-Cus. The appellant contends that the classification adopted by the adjudication authority is inappropriate as the goods do not match the description corresponding to tariff item 2106 9099.2. Denial of Concessional Duty Rate:The customs authorities' denial of the concessional duty rate is based on the finding that the imported goods are 'food preparations' rather than 'probiotics'. The adjudicating authority concluded that the goods are not 'probiotics' and thus do not qualify for the concessional rate under the relevant notifications.3. Burden of Proof on Classification:The appellant cited the Supreme Court decision in HPL Chemicals Ltd. v. Commissioner of Central Excise, emphasizing that the burden of proof in classification matters lies with the Revenue. The court held that the customs authorities failed to discharge this burden by not providing sufficient evidence to support the reclassification.4. Validity of Reclassification by Customs Authorities:The Tribunal found that the show cause notices did not allege that the goods were not 'probiotic cultures' as declared. The reclassification by customs authorities, based on the assumption that the goods are 'food preparations,' was not substantiated by technical evidence. The Tribunal concluded that the adjudicating authority's reliance on chapter notes and the General Rules for Interpretation was misplaced.Conclusion:The Tribunal set aside the impugned orders, stating that the deficiency in the adjudication proceedings could not be remedied by remand. The appeals were allowed, and the original classification and concessional duty rate were reinstated.
TaxTMI 