2020 (3) TMI 669

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....lls under Central Excise Tariff Heading 7115 at NIL rate of drawback has been upheld. However the penalty of Rs. 10,000/- imposed on the applicant under Section 117 of the Customs Act, 1962 was waived on the ground that this was merely a classification dispute. 2. The brief facts leading to the present proceedings are that the applicant had cleared 'Sputtering Targets' by classifying them under Central Excise Tariff Heading 8543 instead of under 7115 and claimed the duty drawback of Rs. 1,98,66,330/-. The revision application has been filed on the grounds that Sputtering Targets are classifiable under Central Excise Tariff Heading 8543 and not under 7115. The applicant prayed that Order-in-Appeal No. CC (A)/Cus/ 237/2013, dated 29-4-2....

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....ve been classified under Chapter 76 vide Notification No. 25/99-Cus., dated 28-2-1999. The Applicant reiterated the points mentioned in written submissions during personal hearing. Another date for personal hearing was given to the applicant on 11-9-2019 and the applicant appeared on the said date. The applicant has stated that the respondents have relied upon Chapter Note 1(b) of Chapter 71 of Central Excise Tariff Act, 1985. However Chapter Note 3(k) below this note excludes 'machinery, mechanical appliances or electrical goods or parts thereof of Section XVI'. They further submitted that classification cannot be decided by referring to Notification No. 25/99-Cus., dated 28-2-1999. The impugned goods fall under Tariff Heading 8543. The A....

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....(DBK) regarding finalization of impugned 48 shipping bills of the applicants and stated that the duty Drawback has not been released. 4. The applicant has relied on the Supreme Court judgment in the Pankaj Jain Agencies v. UOI [1994 (72) E.L.T. 805 (S.C.)] wherein it has been contended that "Machinery parts not specifically described in a heading of Customs Tariff Act, 1975/Central Excise Tariff Act, 1985 do not for that reason become excluded from levy of statutory duty - Such parts to be classified in an appropriate heading by applying relevant Section Notes and Chapter Notes". The applicant has, therefore, contended that sputtering target being a specific item and identifiable with a particular physical vaporization deposit machine....

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....ion. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods". Moreover the Chapter Note 1(b) of Chapter 71 of Customs Tariff Act, 1975 reads as under : "1. Subjects to Note 1(a) to Section VI and except as provided below, all articles consisting wholly or partly : (b) Of Precious metal or of metal clad with precious metal, are to be classified in this Chapter." Section Notes and Chapter Notes of Schedule to Customs Tariff Act, 1975 are in....