2024 (9) TMI 712 - AT - Customs

Aluminium formwork structures classified under CTH 7610 90 10 not CTH 8480 60 00 as scaffolding equipment

M/s. Alcove Construction Private Limited Versus Commissioner of Customs (Port), Kolkata

CESTAT Kolkata held that aluminium formwork structures with accessories should be classified under CTH 7610 90 10 rather than CTH 8480 60 00, as these ... Classification of imported goods - Aluminium Formwork Structure with Accessories - to be classified under the Heading of 8480 60 00 of the Customs Tariff Act or under Customs Tariff Heading 7610 90 10? - recovery of the short-levied Customs Duty - scope of SCN - HELD THAT:- When the goods viz., Aluminium structures in this case, are similar to equipment for scaffolding, shuttering, propping or pit-propping, the same would get classified under heading 76.10 only. Therefore, we hold that the appellant was correct in classifying the impugned goods under CTH 7610 90 10. This is a case where the Bills-of-Entry were self-assessed by the appellant. The Revenue has not challenged the assessment under these Bills-of-Entry, which they are required to do before they come up with their demand notice. There are force in the appellant’s submission that the ld. adjudicating authority and the lower appellate authority have traversed beyond the scope of the Show Cause Notice. Admittedly, though a proposal was made to deny the benefit of the Notification, the Show Cause Notice did not specify as to any condition which had not been fulfilled by the appellant so as to deny the benefit of the said Notification. In such a case, the appellant would not have had an opportunity to defend their case by submitting proper documentary evidence. The impugned order is set aside - appeal allowed. Issues:1. Classification of imported goods under Customs Tariff Heading.2. Denial of benefit of exemption Notification.3. Challenge to the assessment of Bills-of-Entry.4. Compliance with principles of natural justice.Classification of Imported Goods:The appellant imported 'Aluminium Formwork Structure with Accessories' and claimed exemption under Notification No. 152/2009-Cus. A Show Cause Notice was issued proposing a reclassification of the goods under a different Tariff Heading, leading to a demand for additional Customs Duty. The adjudicating authority upheld the reclassification, denied the exemption, and imposed penalties. The appellant contended that the imported goods were not molds but customized formwork structures, correctly classified under Heading 7610. The Tribunal analyzed the nature of the goods, considering expert opinions and explanatory notes, and concluded that the appellant's classification was correct.Denial of Exemption Benefit:The appellant argued that the denial of the exemption benefit was unjust as the Show Cause Notice did not specify the grounds for denial, depriving them of the opportunity to defend their case effectively. The Tribunal found merit in this argument, noting that the authorities had exceeded the scope of the notice by not providing specific reasons for denying the exemption. Consequently, the Tribunal set aside the denial of the exemption benefit.Challenge to Assessment of Bills-of-Entry:The appellant raised a procedural issue regarding the self-assessment of Bills-of-Entry, which was not challenged by the Revenue before issuing the demand notice. Citing precedent, the Tribunal held that the demand for differential duty without challenging the original assessment was not sustainable. The Tribunal emphasized the importance of challenging assessments before making demands, ultimately setting aside the impugned order on this ground as well.Compliance with Principles of Natural Justice:The appellant further contended that the principles of natural justice were not followed, as they were not given a fair opportunity to defend against the proposed denial of the exemption. The Tribunal agreed, stating that the lack of specificity in the Show Cause Notice deprived the appellant of a proper chance to present evidence. Consequently, the Tribunal set aside the impugned order and allowed the appeal, emphasizing the importance of adherence to principles of natural justice in such proceedings.