Upgraded Beneficiated Ilmenite Classifiable under CTH 2823

DCW Limited Vs Commissioner of Customs (CESTAT Chennai)

CESTAT Chennai held that Upgraded Beneficiated Ilmenite are synthetic Rutile and hence classifiable under CTH 2823 and not under 2614.

Facts- The assessee is engaged in the manufacture of Titanium Dioxide (TiO2) which is exported as “Upgraded Beneficiated Ilmenite (Synthetic Rutile) TiO2 95% Min. Moisture 0.5% Max.” The same was declared under Tariff Item No. 2823 00 90 of the Customs Tariff and it is a matter borne on record that the assessee has been declaring the said item under the said Tariff Heading since 1986. It is apparent from the record that the above product has also been cleared in the domestic market under the very same classification under the Central Excise Tariff (CET) since 1986. In fact, a copy of invoices placed on record supports the above claim.

Similar to its earlier exports, the assessee filed two shipping bills both dated 02.03.2013, for the export of Upgraded Beneficiated Ilmenite (Synthetic Rutile) under CTH 2823. The Revenue, however, not accepting the above classification of these goods, sought to classify the same under CTH 2614 00 20.

The Assistant Commissioner of Customs, vide Order-in-Original, classified the goods under export under Tariff Item No. 2624 00 20, as proposed. The first appellate authority accepted the classification made by the assessee thereby setting aside the re-classification proposed and confirmed by the original authority. Being aggrieved, revenue has preferred the present appeal.

Please become a Premium member. If you are already a Premium member, login here to access the full content.