TaxTMI 
TaxTMI 
2022 (8) TMI 1164
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....dated March 17, 2012 [Sl. No. 399(X)] (in short, "the said notification") [hereinafter referred to as "first impugned order") in respect of consignments of power tillers imported under 31 (thirty one) Bills of Entry, detailed in paragraph 1 of the said order dated 11.09.2014. 2. Appeal No. C/76038/2015 has been filed by the Revenue, being aggrieved by the Order-in-Appeal No. Kol/Cus/Port/AM/054/2015 dated 18.08.2015 passed by the Commissioner of Customs (Appeals), Kolkata, allowing the appeals filed by Chirag Corporation against assessments on two Bills of Entry filed for import of power tillers denying the benefit of the said notification. The Commissioner (Appeals), however, while allowing the appeal, extended the benefit under the said notification (hereinafter referred to as "second impugned order"). 3. The facts in brief in the two appeals before us are as under: 3.1 Appeal No. C/76152/2015 BTL, during the period from July 10, 2012 to August 29, 2013, imported 31 consignments of Power Tillers. Separate Bills of Entry were filed in respect of each consignment, in all of which BTL claimed benefit of concessional rate of basic customs duty under the said notification,....
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....otification was available to the goods imported, placing reliance upon the Circular issued by CBEC bearing No. 45/2001-Customs dated 07.08.2001 it was held that the goods imported were classifiable under CTH 8701 of the Customs Tariff and not under CTH 8432. It was further held that the exemption under the said notification was limited to rotary tillers and not power tillers and hence not available to the imported goods. However the Tribunal maintained the order of the Commissioner (Appeals) setting aside confiscation of the goods under Section 111(m) of the Act and imposition of fine and penalty imposed. 3.2.5 Being aggrieved by the order dated 25.02.2020 of this Tribunal, Chirag preferred a writ petition before the Calcutta High Court, being WPA/943/2021 (Rajesh Mehta Vs. Union of India & Ors.). By a judgment dated 23.11.2021 the Hon'ble High Court, while not interfering with the Tribunal's order whereby the confiscation, redemption fine and penalty imposed by the Commissioner (Appeals) were set aside, quashed the order dated 25.02.2020 of the Tribunal on the issue of availability of the benefit under the said notification and remanded the matter for fresh consideration in lig....
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....oms duty @2.5% to Power Tillers". (iv) By Notification No. 19/2015-2020 dated July 15, 2020 issued by the DGFT authorities it has been made clear, under Clause 3(a) thereof, that under HS Code 8432 8020 import is 'Free' for all items except "Power Tillers" as defined under IS 13539-2018, thus equating Power Tillers with Rotary Tillers, referred to in paragraph 1 of the notification, under Exim Code 8432 8020. Thus Power Tillers even as per the Foreign Trade Policy is classified, in consonance with the Customs Tariff, under Tariff classification under TSH 84328020. Hence, the requirement of the said notification for availing concessional rate of customs duty stands satisfied in respect of Power Tillers also. (v) The Explanatory Note on Budget Changes 2002-2003 issued by CBEC after the introduction of the Finance Bill 2002 has made it clear that Power Tillers are to be classified under Heading 84.32 and the Circular No. 45/2001 dated August 7, 2001 of CBEC to the contrary issued earlier has been withdrawn. Thus whatever doubt or dispute remained relating to the tariff classification of Power Tillers came to an end with effect from the coming into effect of the Finan....
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....der heading 84.32. Circular No. 45/2001, dated 7^th August, 2001 is accordingly withdrawn." (emphasis added) It has thus been made clear that power tillers are also to be classified under CTH 84.32. It has also been made clear that Circular No. 45/2001 dated August 7, 2001 had been withdrawn. 7.1 Circular No. 45/2001-Customs dated August 7, 2001, which has been relied upon on behalf of the Revenue, had clarified that "pedestrian tractors"/ "power tillers" were classifiable under CTH 87.01, whereas "rotary tillers" were classifiable under CTH 84.32. In view of the above clarification this circular no longer survives. 7.2 We find that even the DGFT authorities have recognised that power tillers come under HS Code 8432 8020 (CTH 8432 8020). This appears from Notification No. 19/2015-2020 dated July 15, 2020 issued by the Directorate General of Foreign Trade, Ministry of Commerce & Industry, Government of India, which is as follows: "S.O. 2352 (E): In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy 2015-2020, as amended from time to time, the Central Government hereby amends the import p....
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....riff, the Bench embarked on a comparison between tractors and power tillers as also rotary tiller and power tiller and thereafter, relying upon the decision of the Hon'ble Supreme Court in O.K. Play (India) Ltd. Vs. CCE, 2005 (180) ELT 300 (SC) observed and held as follows (para 14): "14. From the above it is very clear that the Government of India has always been classifying Power Tiller under CH 84.32 and not under CH 87.01. Even the Delhi High Court distinguished between Tractors and Power Tillers and held that Power Tiller is not a Tractor. In all the exemption Notifications given to Power Tiller, the classification is mentioned as 84.32. Moreover in 2002-2003 Budget the Government of India has clarified that Power Tiller are to be classified under 84.32. In our view, the legal maxim 'contemporanea expositio et optima et fortissima in lege' (Contemporaneous exposition is the best and strongest in the law. A state is best explained by following the construction put upon it by judges who lived at the time it was made, or soon after) [Black's Law Dictionary] is very relevant for this case. All along the judiciary and the CBEC have been holding that Power Tiller is classif....