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of <h1>Imported Clear Float Glass with TIN layer correctly classified under CTH 70051090, eligible for FTA benefits under Notification 46/2011-Cus</h1> <h3>M/s. Bagrecha Enterprises Ltd. Versus Commissioner of Customs, Chennai</h3> M/s. Bagrecha Enterprises Ltd. Versus Commissioner of Customs, Chennai - TMI The issues involved in the judgment are:i. Classification of imported Clear Float Glass (CFG) under CTH 70051090 or CTH 70052990.ii. Eligibility for FTA benefit under Sl. No. 934 of Notification No. 46/2011-Cus dated 01.06.2011.iii. Invocation of Extended Period for demand of duty.Issue i: Classification of imported Clear Float Glass (CFG) under CTH 70051090 or CTH 70052990The Appellant imported 'Clear Float Glass' (CFG) from Malaysia classifying it under CTH 70051090 and availed exemption under Notification No. 46/2011-Cus dated 01.06.2011. The department, however, reclassified the imported CFG under CTH 70052990, attracting BCD @10%, alleging misclassification to avail FTA benefits. The Show Cause Notice (SCN) dated 18.04.2022 proposed reclassification and demanded differential Customs duties of Rs.41,41,13,642/- along with interest and penalties. The Adjudicating Authority confirmed the reclassification under CTH 70052990 and imposed fines and penalties.The Appellant argued that the CFG has a microscopic tin layer, qualifying it under CTH 70051090. Test reports from CSIR-CGCRI confirmed the presence of an absorbent tin layer. The Appellant cited previous rulings and test reports supporting their classification. The Tribunal found that the CFG has a thin absorbent tin layer, thus meriting classification under CTH 70051090. The Tribunal also noted that there is no legal requirement for the absorbent layer to be on a specific side of the glass.Issue ii: Eligibility for FTA benefit under Sl. No. 934 of Notification No. 46/2011-Cus dated 01.06.2011The Appellant claimed FTA benefit under Sl. No. 934 of Notification No. 46/2011-Cus dated 01.06.2011. The Tribunal confirmed the classification of CFG under CTH 70051090, making the Appellant eligible for the FTA benefit, subject to the production of valid Certificates of Origin as per the Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Government of Member States of ASEAN and Republic of India) Rules, 2009.Issue iii: Invocation of Extended Period for demand of dutyThe Appellant argued that they had been importing CFG for almost 20 years under CTH 70051090 without any dispute, except for the proceedings initiated due to the CRA objection. They contended that the invocation of the extended period was unwarranted as the imports were provisionally assessed and finalized under CTH 70051090 based on test reports. The Tribunal found that the issue was known to the revenue, and the appellant had not suppressed any facts. The proposal to reclassify was based on CRA objections, not on any fault of the Appellant. Therefore, invoking the extended period for demand of duty and imposing penalties was not sustainable.ConclusionThe Tribunal allowed the appeal, set aside the impugned order, and confirmed the classification of imported CFG under CTH 70051090. The Appellant was entitled to the benefit of Sl. No. 934 of Notification No. 46/2011-Cus, and the invocation of the extended period for demand of duty was not justified. Consequently, the confiscation of CFG and imposition of fines and penalties were also set aside.
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