Jindal Stainless Ltd. Vs Commissioner of Customs (CESTAT Hyderabad)
Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Hyderabad allowed an appeal filed by Jindal Stainless Ltd., overturning an earlier order that classified their imported “Quick Lime” under a different tariff heading. The dispute centered on whether the “Quick Lime” should be classified under Customs Tariff Heading (CTH) 25221000, as claimed by Jindal Stainless, or under CTH 28259090, as argued by the Customs Department. Jindal Stainless imported “Quick Lime” with a calcium oxide (CaO) content exceeding 90%, obtained through the calcination of limestone. They argued that CTH 25221000 specifically covers “Quick Lime,” regardless of CaO content, while the department contended it should be classified under CTH 28259090 as a “Metallic Oxide.”
The CESTAT examined the relevant tariff entries and the General Rules for the Interpretation of the Import Tariff (GIR). It noted that Chapter 25 covers mineral products like lime, while Chapter 28 covers inorganic chemicals and metal oxides. The tribunal emphasized the clear exclusion of calcium oxide and hydroxide from CTH 2522, indicating that only chemically transformed products derived from these minerals would fall under CTH 2825. The CESTAT determined that the imported “Quick Lime,” being a mineral product, fell squarely under CTH 25221000. It highlighted that the descriptions of CTH 2522 and 2825 are mutually exclusive, and thus GIR 3, concerning goods classifiable under multiple headings, was not applicable.
The CESTAT also noted that Jindal Stainless had previously won similar classification disputes before the Principal Bench of CESTAT New Delhi and CESTAT Kolkata. Crucially, the tribunal cited the Supreme Court’s ruling in Commissioner of Customs (Preventive), Mumbai Vs Viraj Profiles Ltd., which affirmed that “Quick Lime” obtained by calcination of limestone remains classifiable under Chapter 2522. This Supreme Court decision settled the matter, reinforcing the CESTAT’s finding that the imported “Quick Lime” should be classified under CTH 25221000.
The CESTAT concluded that the Customs Department’s arguments for classifying the “Quick Lime” under CTH 28259090 were not legally sound. They emphasized that the “Quick Lime” was not a mixture of different materials requiring classification under GIR 2 or 3. The tribunal reiterated that the imported goods were “quicklime” and therefore correctly classifiable under tariff item 25221000. Consequently, the CESTAT set aside the previous order and allowed Jindal Stainless’s appeal, granting them consequential relief.
FULL TEXT OF THE CESTAT HYDERABAD ORDER
