2001 (5) TMI 378

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....nt under Heading 3824.90. Later, the department found that the item for the purpose of Import & Export Policy was classifiable under Customs Tariff sub-heading 38249029.80 which required a licence if they are of a kind classified as consumer goods. He has analysed the literature furnished by party and noted that even as per the literature the item, declared as food additives by the appellants, is having a composition 50:50 mixture of Nycleotide 5' - Inosinate (IMP) & 5' - Guanylate (GMP) - The two compounds with strong flavour enhancing properties. Therefore, he held that they were rightly classifiable under 3824.90 and not under CTH 29.42 for the purpose of clearance under OGL benefit without a licence, overruling the reason that under Tar....

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.... item was being cleared under OGL as a practice. Therefore, the subsequent change of opinion cannot be accepted. He submits that although, they accepted the classification for the purpose of Customs Act under 38 but for the ITC (HS) classification, for the purpose of licence, it has to be treated as having cleared under 29 as single chemical compound. He submits that Chapter 29 includes preparation of mixtures and therefore item being mixture, cannot be overruled from Chapter 29 and hence no licence is required. Therefore, he seeks for setting aside the order of confiscation and imposition of penalty. He referred to technical bulletin and literature and also other materials on record to buttress his argument. 3. Ld. DR Shri Arumugam....

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....29 even in terms of literature produced by the appellants. 4. On careful consideration of the submissions made by both sides, we are satisfied that there is no infirmity in the impugned order and appeal does not have any merit and requires to be rejected. Appellant clearly declared in the Bill of Entry the item to be food additives and accepted the classification for payment of customs duty under Chapter 3823.00. Therefore, they have not challenged the classification and the clearances made in the Bill of Entry. Therefore the proceedings initiated for confiscation for the purpose of ITC is a justified action. For the purpose of import of any items in terms of Export & Import Policy, the party has to obtain a licence. In this connect....