TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 1141
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....on 01.04.2010 and on examination of the goods lying in the premises valued at Rs.15,06,400/- were seized and later released provisionally on execution of Bond and bank guarantee. On completion of investigation by recording statement of the Director of the appellant, a letter was addressed to the appellant on 05.04.2010 directing him to pay an amount of Rs.1,45,016/- being differential duty on the imported products. Later, a show cause notice was issued to the appellant on 30.09.2010 proposing classification of the products imported viz. Agar, Agaroses & Peptones under CTH 13023100, 13021915 and 35040000, respectively under the Customs Tariff Act, 1975 and beef extract, pork infusion, yeast extract, peptonised milk and lacto albumin under CTH 02109900, 02109900, 02109900, 04029990 and 04029990 respectively and differential duty of Rs.53,27,592/- was demanded under proviso to Section 28 of the Customs Act, 1962 along with interest; also, the goods seized and released provisionally proposed to be confiscated under Section 111(m) and penalty under Section 112(a) read with Section 114A of the Customs Act, 1962. Pending adjudication, appellant filed two writ petitions before the Hon'ble ....
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.... of M/s. Colloids Impex Private Ltd. under Section 112(a) of Customs Act, 1962. Hence the present appeal. 3. The summary of the submissions advanced by the learned advocate for the appellant are as below:- ➢ The impugned order confirming customs duty demand along with attendant levies is totally unsustainable and is liable to be set aside. ➢ The learned Commissioner has not strictly followed the order of the Hon'ble High Court. As per the order of the High Court, the adjudication proceeding has to be restricted to the Department's communication bearing C. No. VIII/48/54/2010-PCA-II/1878 dated 05.04.2010 being Annexure H to the Writ Petition whereunder duty of Rs.1,45,016/- has been demanded. ➢ The impugned order has incorrectly held that imported goods against the subject Bill of Entry cannot be classified as Agar Powder or 'Prepared Culture Media' declared under CTH 38210000 but under CTH 13023100 as Agar Agar cannot be acceptable being not based on expert opinion or test results but largely based on information available on Wikipedia and generalised views. Classification of goods relying on Wikipedia is not tenable as held by ....
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....f Central Excise [1997(89) ELT 16 (SC)] and the Larger Bench of the CESTAT in the case of Brindavan Beverages Pvt. Ltd. Vs. CC,CE&St [2019(29) GSTL 418 (Tri. LB)]. ➢ Contrary to the finding of the learned Commissioner, the learned advocate for the appellant has submitted that the goods imported were 'Plant Tissue Culture - Agar' and not the normal / natural Agar Agar; hence rightly classifiable under CTH 38210000 but not under CTH 13023100. ➢ The said heading covers various preparations in which bacteria, moulds, microbes, viruses, other microorganisms and plant, human or animal cells required for medical purposes (e.g. for obtaining anti-biotics) or for other scientific purposes or in industry (e.g. in the manufacture of vinegar, lactic acid, butyl alcohol) can find nourishment and multiply or in which they can be maintained. They are usually prepared from meat extracts, fresh blood or blood serum, eggs potatoes, alginates, agar-agar, peptones, gelatin etc. and often contain additional ingredients such as glucose, glycerol, sodium chloride, sodium citrate or dyes. Acids, digestive ferments or alkalis may be added to bring them to the required degree....
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....more specific description be preferred to the heading which gives the general description; the goods are classifiable under CTH13023100, consequently, initiated proceedings against the appellant by effecting seizure of the imported goods, which were later released provisionally on execution of bond and Bank Guarantee. Show-cause notice was issued to the appellant alleging classification of the imported goods under CTH 38210000 relating to the Bill of Entry No.225560 dated 18.03.2010 demanding differential duty; also demand for the clearances made during the past period from 01.06.20005 till 31.03.2010 classifying the various products under respective headings as against the declared classification under CTH 38210000 by the appellant. The said action was challenged by the appellant before the Hon'ble High Court of Karnataka. The Hon'ble High Court remanded the matter to the adjudicating authority to consider the letter dated 05.04.2010 as show-cause notice and dispose the matter accordingly. 8. The learned advocate raised a preliminary objection that the Hon'ble High Court directed the Commissioner to treat the letter dated 05.04.2010 demanding differential duty of Rs.1,45,016/- ....
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....he assessment of the previous Bill of Entry No.223909 dated 23.02.2010, the officer informed that the Bill of Entry was facilitated in RMS and as an SIIB check, it was recalled for valuation purposes and in that case for assessment, first check assessment was resorted to asking for test purpose and for clearance. In the report it is not made clear whether samples were subjected to tests or otherwise; however, the officer has mentioned that after receipt of the examination report which stated that the goods are Agar powder without brand and plant quarantine release order, NIDB data was also checked for its value as well as classification which revealed that Agar powder was classified under CTH 38210000 not only at ICD Bangalore but also at Navasheva, Mumbai. Also, the officer noted that a certificate was produced stating that the imported goods is processed Agar powder for tissue/biological culture and therefore, it was felt to be classifiable under CTH 38210000. He has further reported that the first check examination report did not provide details that the goods are not what is declared and actual item is Agar-Agar; therefore, the value was only loaded in comparing the import valu....
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....edia for development or maintenance of micro-organism (including viruses and the like) or of plant, human or animal cells'. In the Bill of Entry, nowhere the appellant/importer has claimed or mentioned that Agar powder (industrial PTC Agar) is a prepared culture media; hence, it is for the Revenue to examine by chemical analysis and other tests to ascertain whether the description of the goods viz. Agar powder (industrial PTC Agar) declared by the appellant is Agar-Agar or prepared culture media attracting classification under CTH 13023100 or prepared culture media under CTH 38210000 as claimed by the appellant in the Bill of Entry. 13. In the impugned order, the learned Commissioner has referred to the scope of prepared culture media for development or maintenance of micro-organism as mentioned under Tariff heading 38210000 referring to the resources in the Wikipedia and concluded that the Agar powder is not cultured media but is one of the important ingredients of the culture media. Further, he has observed that Agar-Agar or Agar powder or Bacto Agar or PTC Agar are not culture media since not specifically prepared for culture media as these culture media have different other ....