TaxTMI 
TaxTMI 
2022 (5) TMI 1597
X X X X Extracts X X X X
X X X X Extracts X X X X
....stration number 33ABEFS8820K1ZY. The applicant has obtained an IEC and is intending to import "Clear Float Glass with Absorbent layer" (herein after, the subject goods), from M/s. Xinyi Energy Smart (Malaysia) Sdn Bhd, Malaysia and M/s. Kibing Group (M) Sdn, Bhd, Malaysia. The subject goods are stated to be used for decorative, industrial or automotive purposes. The subject goods possess an absorbent layer on one side of the glass only. The applicant is of the view that the subject goods are classifiable under sub-heading 7005 1090. The applicant intends to claim the benefit of 'Nil' rate of customs duty under exemption notification no. 46/2011 -Cus. : (Sr. No. 934), dated 01.06.2011. The said notification is issued under ASEAN India Free Trade Area Preferential Tariff, which grants benefit of 'Nil' rate of duty for goods falling under CTH 7005 1090, if the same are imported from Malaysia. 3. The applicant has submitted that the subject goods are clear float glass, with an absorbent layer, which is fluorescent under UV illumination. The subject goods are not wired, not tinted or green in colour. It is submitted that the heading 7005 10 only covers non-wired glasses....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al Commissioner of Customs (Air Cargo), Chennai-VII and the Commissioner of Customs, Nhava Sheva-III, which are discussed here-in-after. 5. The hearing was conducted in the virtual mode on 12.04.2022. Shri. Hari Radhakrishnan, advocate, from M/s. AGOL Associates appeared on behalf of the applicant. S/Shri. Kaushalendra Singh, Appraising Officer, Gr. III, from Nhava Sheva and Shri. Monu Sachar, Appraising Officer, Gr. III from ACC, Chennai appeared for the hearing. Shri. Harshanand, Dy. Commr. was also present for the revenue. 5.1. The learned advocate explained the product and the reason for seeking advance rulings. Shri. Singh and Shri. Sachar were of the opinion that while the classification sought by the applicant is correct, the benefit of exemption sought under ASEAN FTA couldn't be extended if the country of origin certificate is not mentioning the HS code which is listed in the notification. Shri. Harshanand couldn't be seen or heard. Shri. Singh and Shri. Sachar were requested to convey their comments at the earliest. 5.2. In the comments on the aforesaid issue from the office of the Commissioner of Customs (Nhava Sheva -III), Jawaharlal Nehru Customs House, it i....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the exemption benefit, as claimed, it is opined that the same would be subject to the outcome of the test report submission of requisite declaration as mandated by CAROTAR, 2020. On the third question of the applicant, the opinion is that same would be subject to the outcome of test report. 6. The issue for which the subject advance rulings have been sought can be summarized as:- (i) Classification of clear float glass having absorbent layer (ii) Eligibility of exemption notification no. 46/2011-Cus. : dated 01.06.2011. (iii) The eligibility of the exemption notification no. 46/2011-Cus. : dated 01.06.2011 for the subject goods in the event of wrong mention of HS code in the COO. 6.1. As mentioned at para 3 above, the issue of classification of clear float glass having absorbent layer on one side and eligibility of the exemption notification no. 46/2011-Cus. : dated 01.06.2011 for the subject goods was examined in the advance ruling no. CAAR/Mum/ARC/36/2021 in the case of M/s. Chandrakala Associates and the relevant portion of the said ruling is reproduced as under:- "7. The issue for which the subject advance rulings have been sought can be summarized as:- (i) Classif....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g process. 8. Notification no. 46/2011-Cus. : dated 01.06.2011 prescribes the effective rate of duty for specified goods imported from Malaysia, Singapore, Thailand, Vietnam, Myanmar, Indonesia, Brunei Darussalam, Laos, Philippines and Cambodia (ASEAN). The said Notification makes provision to exempt goods of the description as specified in column (3) of the table appended thereto and falling under the chapter, heading, sub-heading or tariff item of the first schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corresponding entry in column (2) of the appended table, from so much of the duty of customs leviable thereon as is in excess of the amount calculated at the rate specified, provided the importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of the said exemption is claimed are of the origin of the countries as mentioned in Appendix-I, in accordance with provisions of the Customs Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eria have been met, and that, mere submission of a certificate of origin may not be sufficient. For this purpose, the importer is required to possess sufficient origin related information. As required in the aforesaid section 28DA, Central Government has also notified the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020) vide notification no. 81/2020-Customs (N.T.) :, dated 21st August, 2020, to be implemented from 21st September, 2020. 7. I have considered all the materials placed before me for the subject goods. I have gone through the submissions made by the applicant during personal hearing and the comments of the jurisdictional Principal Commissioner/Commissioner of Customs, on the impugned subject matter. The subject goods for which advance ruling has been sought, their characteristics, manufacturing process, utility etc. are already mentioned in the aforementioned paras. The subject goods are clear float glass, with an absorbent layer, which is fluorescent under UV illumination. The subject goods are not wired, tinted or green in colour. The heading 7005 10 covers non-wired glasses having an absorbent, reflecting or non-reflectin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t remains to be answered is whether the benefits of the relevant notification would be allowed to the applicant if the COO certificate do not mention the HS code as 7005 1090. A natural corollary to this question would be if the applicant importer mentions the sub-heading 7005 2990, which appears to be adopted in the exporting country, in their import documents while filing their bills of entry, would that be a legal & correct action. Obviously, the answer to the question would be in the negative. I think there is no dispute that when goods are being imported into India the classification would have to comply with Indian laws. If the classification of the subject goods under sub-heading 7005 1090 is correct, as suggested by the applicant and concurred by the Jurisdictional Commissioner of Customs, it would be a travesty of justice to deny the benefit of an exemption available to that sub-heading. I have also taken note of the fact that in case of M/s. Kibing group, the Royal Malaysian Customs authorities appear to have accepted the HS code 7005 1090 for the subject goods. If that is the case, I see no reason why M/s. Xinyi should be placed on a different footing. I have also peruse....