2025 (10) TMI 1383

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....owing to discard of rate of duty corresponding to 8471 4190 of First Schedule to Customs Tariff Act, 1975 and re-assessment at rate of duty corresponding to tariff item 8528 5900 of First Schedule to Customs Tariff Act, 1975 that, duly confirmed by the original authority, was upheld by Commissioner of Customs (Appeals), Mumbai - II vide order [order-in-appeal no. 517(Gr.V)/2024(JNCH)/Appeals dated 2nd April 2024] impugned here. 2. Assailing the finding, Learned Consultant for the applicant submitted that controversy over classification of imported 'interactive flat panel display' is no longer res integra inasmuch as the Tribunal, in Cloud-walker Streaming Technologies Pvt Ltd v. Commissioner of Customs (NS-V) [(2023) 4 Centax 226 (Tri.-B....

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....n of the declared amount is a pre-requisite because the relevant Rules afford consequential alternatives but rejection of declared classification at the outset carries the burden of saddling the exercise with re-classification that may not meet the test of General Rules for the Interpretation of the Import Tariff which prescribes the more apt of any two comparatives for adoption. It has been held by the Hon'ble Supreme Court, in HPL Chemicals Ltd. v. Commissioner of Central Excise, Chandigarh [2006 (197) ELT 324 (SC)], that '29. This apart, classification of goods is a matter relating to chargeability and the burden of proof is squarely upon the Revenue. If the Department intends to classify the goods under a particular hea....

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....nded to the Tribunal so that the evidence on record may be reappreciated. As we have stated, no evidence was led on behalf of the Revenue. There is, therefore, no good reason to remand the matter.' to stipulate that it is for the customs authorities to first establish the appropriateness of the classification proposed by them before substituting that claimed by an importer. 7. Furthermore, it is clear from '1. ....for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes...' of the General Rules for Interpretation of the Import Tariff that comparison is permissible only between headings at the 'four digit level&#....

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....levy. Accordingly, the impugned order is set aside and appeal is allowed.' leaving no room for doubt that the proposed revision of classification against tariff item tariff item 8528 5900 of First Schedule to Customs Tariff Act, 1975 did not meet the test prescribed by the Hon'ble Supreme Court and that assessment to rate of duty corresponding to tariff item 8471 4190 of First Schedule to Customs Tariff Act, 1975 remained undisturbed. The decision was impugned in appeal before the Hon'ble Supreme Court but dismissed for low tax effect. The reasons relied upon in the assessment upheld by the order impugned here are much the same as in re Cloud-walker Streaming Technologies Pvt Ltd. The test of usage, predominating or principal, among mach....

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.... Ltd did not settle the law and to press for affirmation of the contrary in the interests of uniform assessment practice as instructed by Chennai Customs does not behove judicial decorum. In this connection, we draw attention to the observations of Hon'ble Supreme Court '6....... It cannot be too vehemently emphasised that it is of utmost importance that, in disposing of the quasi-judicial issues before them, revenue officers are bound by the decisions of the appellate authorities. The order of the Appellate Collector is binding on the Assistant Collectors working within his jurisdiction and the order of the Tribunal is binding upon the Assistant Collectors and the Appellate Collectors who function under the jurisdiction of the....