Dharampal Satyapal Ltd. Vs Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that machine imported for crumbling and processing Areca Nuts are classifiable under Customs Tariff Heading [CTH] 84371000. Thus, classification held by department under CTH 84798200 not tenable.
Facts- The appellant filed Bill of Entry for clearance of machines imported by the appellant. During the test check of Bill of entry (BOE), in audit, it was observed by the department that the appellant imported the machines for their Areca Nut Plant declaring the Custom Tariff Heading CTH No. 84371000, for which the Counter Vailing Duty (CVD) is at the rate of 0%. However, the department opined that the said CTH is for the machines which are meant for cleaning, sorting or grading seed, grain or dried leguminous vegetables whereas the machines imported by the appellant were for being used in crumbling or processing Areca Nuts (commonly known as supari), for production of Pan Masala. As per department, the imported machines were actually classifiable under CTH 84798200 for which the effective rate of Counter Vailing Duty (CVD) is at the rate of 12.5%.
The duty demand was confirmed vide Order-in-Original. Commissioner (Appeals) dismissed the appeal and upheld the demand. Being aggrieved, the appellant is before this Tribunal.
