2002 (11) TMI 132 - AT - Customs

Imported Fermenter Classification Dispute Resolved: Key Considerations for Customs Duty

The Tribunal upheld the classification of the imported fermenter under sub-heading 8479.89 instead of 8419.89, as fermentation does not involve a change ... Fermenter - Valuation (Customs) Issues:Classification of imported fermenter under Customs Tariff Act, eligibility for Notification No. 16/2000-Cus., inclusion of payment for design, engineering, and site run documents in the assessable value.Classification Issue:The Appellant claimed the fermenter should be classified under sub-heading 8419.89 for machinery involving a change of temperature and sterilization. The Respondent argued fermentation by bacteria is not based on temperature change, classifying it under sub-heading 8479.89. The Tribunal upheld the classification under 8479.89, as fermentation is not a process involving a change of temperature as required under 8419.89.Eligibility for Notification No. 16/2000-Cus.:The Appellant sought exemption under Notification No. 16/2000-Cus. for machinery producing commodities, citing vaccine production in the fermenter. The Tribunal remanded the matter to the Adjudicating Authority to determine eligibility, as it was not considered previously.Inclusion of Payment for Documents:The Appellant argued against including the value of design, engineering, and site run documents in the fermenter's assessable value. They claimed the manuals were not for manufacturing the fermenter or vaccines but for GMP requirements. The Tribunal ruled in favor of including the document value in the fermenter's value for Customs Duty levy, as the manuals were essential for vaccine manufacturing under GMP requirements. The Tribunal set aside confiscation and penalties for filing two Bills of Entry, directing a review of eligibility for Notification No. 16/2000-Cus. by the Adjudicating Authority.