Principal Commissioner of Customs Vs Vasta Biotech Pvt. Ltd. (CESTAT Chennai)
Principal Commissioner of Customs, Chennai, faced a setback as the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, dismissed its appeal against Vasta Biotech Pvt. Ltd. The appeal concerned the classification of ‘Martech DHA’, an issue the Tribunal had previously settled.
The Revenue’s appeal challenged an Order-in-Original that had, on identical facts, followed an earlier CESTAT ruling on the very same product and noticee. Notably, the earlier ruling, Final Order No. 40930/2024 dated July 23, 2024, had classified ‘Martech DHA’ under CTI 2916 1590. This decision had been formally accepted by the Revenue and communicated to Vasta Biotech Pvt. Ltd.
Identical Facts, Renewed Litigation
Despite its previous acceptance, the Revenue initiated a new appeal. The Show Cause Notices for the period under review had been moved out of a ‘Call Book’ specifically for adjudication after the Tribunal’s earlier judgment. The Revenue’s appeal was predicated on two primary grounds: a perceived “non-determination of classification issue” by the adjudicating authority and “non-applicability of the case laws relied upon” in the original order.
The Tribunal found the Revenue’s first argument particularly “strange.” The adjudicating authority had, in fact, explicitly referred to the CESTAT’s prior ruling, which had become final and binding. Paragraph 12 of the impugned order, reproduced by the Tribunal, clearly stated that “the original dispute has attained finality with the CESTAT ruling that the classification of the goods “Martek DHA” falls under CTI 2916 1590.”
