Quick Lime with 70-75% purity classified under CTH 2522 1000, refund ordered with 12% interest

CESTAT Kolkata ruled on classification of imported Quick Lime, determining it should be classified under CTH 2522 1000 rather than CTH 2825 as claimed by Revenue. Following precedent from Delhi Bench in Jindal Stainless case, tribunal held Quick Lime with 70-75% purity falls under CTH 2522 per Board's Circular and HSN Explanatory Note. Since appellant paid customs duty and interest during investigation in April-May 2018 before show cause notice issued March 2019, tribunal ordered refund of amounts paid with 12% interest, citing precedents from Delhi and Allahabad Benches. Appeal disposed favorably for appellant.

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Issues:
1. Classification of imported Quick Lime under Customs Tariff Heading 2522 or 2825.
2. Payment of duty "under protest" before Show Cause Notice issuance.
3. Adjudication confirming demand, penalty imposition, and appeal before the Tribunal.
4. Applicability of previous Tribunal and Supreme Court decisions on similar issues.
5. Refund of Customs Duty and interest paid by the appellant.

Analysis:
1. The appellant imported Quick Lime and classified it under Customs Tariff Heading (CTH) 2522 1000, but the Department issued a Show Cause Notice claiming it should be classified under CTH 2825. The appellant paid the duty demanded "under protest" before the Notice was issued. The appellant litigated the issue, but the adjudicating authority confirmed the demand, penalty, and appropriation of the amount paid.
2. The appellant cited previous Tribunal decisions in similar cases, including Jindal Stainless (Hisar) Ltd. and Viraj Profiles Ltd., where the goods were classified under Chapter 25. The appellant argued that the Supreme Court upheld the Tribunal's decisions, supporting their classification under CTH 2522.
3. The Tribunal examined the issue and relied on the decisions in Jindal Stainless (Hisar) Ltd. and Viraj Profiles Ltd. to classify Quick Lime under CTH 2522 1000, not CTH 2825. The Tribunal allowed the appeal on merits and directed the Revenue to refund the Customs Duty and interest paid by the appellant, along with 12% interest from the date of deposit.
4. Following the precedent set by previous Tribunal and Supreme Court decisions, the Tribunal held that Quick Lime should be classified under CTH 2522 1000. The Tribunal ordered the refund of Customs Duty and interest paid by the appellant, along with 12% interest from the date of deposit until the refund is granted.

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