Berger Paints India Limited Vs Commissioner of Customs (Port) (CESTAT Kolkata)
CESTAT Kolkata held that Ethyl Benzene is isomer of xylene and hence correctly classifiable under Customs Tariff Heading [CTH] 29024400. Accordingly, order demand differential duty set aside and appeal of the assessee allowed.
Facts- M/s. Berger Paints India Limited (appellant) is an actual user of various chemicals including hydrocarbons and several organic chemicals which they use in their paint manufacturing. During the period between 2011 and 2014, the appellant cleared organic chemicals named Mixed Xylene Isomers, by filing Ex Bond Bills of Entry in respect of the goods imported by M/s. Kunjal Synergies (also appellant herein) where they had filed bills of entry for Warehousing which were assessed under CTH 29024400.
The Custom Authorities disputed the classification made in the Bills of Entry for warehousing done by all the appellants under the Custom Tariff Heading no. 29024400 alleging that the hydrocarbon solvent imported by the appellants and cleared by filing the Ex Bond Bills of Entry cannot be treated as ‘Mixed Xylene Isomers’ as mentioned in the CTH 29024400.
A Show Cause Notice dated 04.03.2016 was issued to all the appellants proposing reclassification of the impugned goods under the CTH 27073000, by invoking extended period of limitation u/s. 28 (4) of the Customs Act,1962 alleging deliberate wrong classification. Commissioner confirmed the demands.
