Asahi India Glass Ltd. Vs Commissioner of Customs (Madras High Court)
Conclusion: Light green float glass (tinted non-wired type) should be classified under tinted glass for duty purpose under the Customs Tariff Heading (CTH) 70051010 provided that the goods imported matched the description of “Light Green Float Glass (Tinted Non-Wired Type).
Held: Assessee-company was engaged in the manufacturing of processed laminated and tempered glass, including glass for automotive purposes. It had been importing a product known as “Light Green Tinted Float Glass” since 2011 and classified it under the Customs Tariff Heading (CTH) 70051010. The product was under a concessional rate of customs duty as per the ASEAN Free Trade Agreement (FTA). The Customs Department issued an audit consultative letter to assessee, challenging the classification of the goods and claiming that they should instead be classified under CTH 70052110. The change in classification would result in a higher duty liability. Assessee responded to the audit consultative letter, asserting that the imported glass did, in fact, had an absorbent layer of tin, as confirmed by test reports. Assessee-company further supported its position by referring to earlier decisions by the Customs Department, which had accepted the classification under CTH 70051010 in prior imports. In spite of this response, the Customs Department issued a show cause notice, demanding a higher duty liability of over Rs. 11 crore and reclassification of the goods under CTH 70052110. Aggrieved, assessee challenged the show cause notice by filing three writ petitions arguing that the notice was based on erroneous grounds and ignored the company’s earlier responses. The second petition sought a mandamus (court order) directing the Customs Department to clear the goods under CTH 70051010, as previously determined by various authorities. In the third petition, the company sought a declaration that its classification of the goods under CTH 70051010 was correct. It was held that the Customs Department could not re-open the classification issue, which had already been settled by appellate authorities. The Court stressed that there was no fraud or willful misstatement on the part of the petitioner, as the goods had consistently been imported under the same classification without any objections from the authorities. The Court quashed the show cause notice issued by the Customs Department and directed the department to clear the goods under CTH 70051010, provided that the goods imported matched the description of “Light Green Float Glass (Tinted Non-Wired Type).” However, the Court declined to issue a declaration affirming the correctness of the classification, noting that such a declaration would require a detailed examination of the goods, which was beyond the scope of the writ jurisdiction.
