Case Law Details
Sumit Arora Vs Commissioner of Customs (CESTAT Chandigarh)
CESTAT Chandigarh held that steel balls are classifiable under the Chapter Heading 8482 9900 and not under Chapter Heading 8714 as contended by revenue. Accordingly, duty demand set aside.
Facts- The appellants are engaged in the import of “Steel Balls”. The appellant classified the impugned goods under Chapter Heading 84829900 whereas Revenue is of the opinion that they are rightly classifiable under CTH 8714 9990. Officers of DRI have initiated investigation of the imports made by the appellant and have seized goods lying in their godowns. A show-cause notice was issued proposing re-classification under CTH 8714 9990; recovering differential duty and imposition of penalty on the company and two Directors. The proposals of the show-cause notice was confirmed vide OIO. Hence, this appeal.
Conclusion- Held that the impugned goods can only be classified under CTH 8482 which is a specific heading; moreover, other Notes of Section XVI or Chapter 84 do not exclude the classification of Steel Balls under CTH 8482. Further, the appellants have submitted that the appellants and other importers are importing from various Ports and all other Customs stations have accepted the classification under CTH 8482 whereas only the Commissionerate of Ludhiana have raised the issue. We are of the opinion that Customs being one Department need to have to maintain uniformity in respect of commodities imported at various stations. Giving a differential treatment to the appellants and supporting the same by stating that the classification arrived at other Customs stations has no bearing on the impugned case, is not acceptable.
Thus, held that the impugned order is not legally sustainable and hence liable to be set aside. When the classification and duty demanded in the show-cause notice are set aside, there is no way that the penalty on the appellant’s company and their directors can survive. Accordingly, penalties also are liable to be set aside.
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