Imported Apatite Ground Calcium Phosphate classified under CTH 25102030 not CTH 28352690 differential duties quashed

CESTAT Ahmedabad allowed the appeal regarding classification of imported Apatite (Ground) Calcium Phosphate. The tribunal held that the natural, non-calcined mineral product should be classified under CTH 25102030 rather than CTH 28352690 as demanded by Customs. The court noted that chemically precipitated calcium phosphate would fall under CTH 2835, but the goods were admittedly natural and not precipitated upon re-testing. Following General Rules of Interpretation for Tariff, the most specific classification CTH 2510 applies. The demand for differential import duties, interest and penalties was quashed.

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Issues involved:
The classification of imported goods under CTH 25102030 or CTH 28352690, imposition of penalties u/s 112(a), 112(b), 114A, 114 AA, and 117 of the Customs Act.

Classification dispute:
The appeal revolves around the correct classification of "Apatite (Ground) Calcium Phosphate / Natural Calcium Phosphate" imported by the Appellant under CTH 25102030 or CTH 28352690. The differential import duties and penalties were imposed based on this classification issue.

Appellant's arguments:
The Appellant argued that previous goods from the same supplier were classified under CTH 2510 2030, and subsequent re-tests confirmed the natural state of the product, supporting classification under CTH 2510. They emphasized that the product was not calcined and should be classified as per Chapter Notes and HSN Explanatory Notes.

Supplier's responsibility:
The onus to classify goods was placed on the importer, and the overseas supplier correctly mentioned details on their documents. The argument was made that no penalty should be imposed on the supplier in this scenario.

Revenue department's stance:
The Deputy Commissioner reiterated the findings of the impugned order, stating that the product underwent a process that rendered it calcined, thus falling outside the scope of CTH 2510.

Judgment and analysis:
The Tribunal analyzed the past classification dispute and re-test reports, concluding that the goods were natural and not synthetic or calcined. They relied on Chapter Notes and Explanatory Notes to determine that the goods should be classified under CTH 2510. The UK Tariff Ruling and technical evidence further supported this classification.

Final decision:
The impugned orders were quashed, and the appeals were allowed with consequential relief, as the product was found to be correctly classified under CTH 2510 as a natural mineral, and penalties were not warranted based on the classification.

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