TaxTMI 
TaxTMI 
2010 (11) TMI 735
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.... drawback, they claimed the classification of the said goods under CTH 8538. However, the concerned AC, Export held the classification under CTH 8536 on the ground that lamp holders are specifically covered under the said heading. He had, accordingly amended the DBK admissible on the said goods from 18%, as claimed by the appellants, to 4%. A penalty of Rs. 5,000/- was also imposed on the appellants under Section 117 of the Customs Act, 1962 for seeking wrong classification. 3. Aggrieved by the said order the applicant filed an appeal with the Commissioner of Customs (Appeals), New Delhi who set aside the penalty imposed on the applicant and upheld the remaining part of the impugned order-in-original. 4. Aggrieved by the abo....
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....ioner of Customs, the Govt. issued a Notification No. 68/2007-Cus. (N.T.), dated 16-7-2007 wherein it was provided that the General Rules to the interpretation of the First Schedule to the Customs Tariff Act, 1975 shall mutatis mutandis apply for classifying the export goods listed in the said Schedule. But both the authorities below failed to appreciate that the duty drawback schedule has not been fully aligned with the Customs Tariff Act, 1975. There are several dissimilarities between the heads of Customs Tariff Act and the rates of duty drawback. Though, the duty drawback schedule more or less has been patterned on the Customs Tariff Act but a close look at the duty drawback schedule would reveal that it is not based entirely on the Cus....
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....im through the system of drawback. In this context "drawback" in relation to any goods manufactured in India and exported means the rebate of duty or Service tax chargeable on any imported materials or excisable materials or taxable services, as the case may be, used in the manufacture of such export goods in India. The goods for drawback shall also include imported spares, if supplied with capital goods manufactured in India. In other words, it implies to drawback the duties suffered by the inputs, whether imported or indigenously manufactured, used in export goods. Drawback is thus allowed not only of the duties incurred on, or by, the direct inputs, raw material and components, wh....
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....as been brought on record. In other words, the Revenue has failed to discharge onus cast on them. Therefore, the impugned order cannot be sustained in the eyes of law. (g) That both the authorities have erroneously relied upon the headings of Customs Tariff Act for fixing the duty drawback on lamp holders made of brass. Through the Customs Tariff Heading 8536 gives detailed classification of various electrical apparatus providing different rates of import duty but no such sub-classification are found in duty drawback schedule. On the other hand, parts suitable for Heading 8536 and 8537 are classifiable under Customs Tariff Heading 8538. Similar is the case under the drawback schedule also. But Heading 8538 in the ....
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....ifiable under drawback schedule heading 8538 02. In this regard, the description given under two different headings as given under may be perused: CTH 8536 "Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example switches, relays, surge suppressors, plugs, sockets, lamp holders and other connectors, junction box for a voltage not exceeding 1000 volts connectors for optical fibres, optical fibre bundles or cables." CTH 8538 "Parts suitable for use solely or principally with apparatus of heading 85, 8536 or 8537." From above, it is quite clear that lamp holder is specified in CTH 8536. The applicant argued to classify the lamp holder as parts suitable f....