Alcove Construction Private Limited Vs Commissioner of Customs (Port) (CESTAT Kolkata)
The appellant imported “Aluminium Formwork Structure with Accessories” under three Bills of Entry dated 24.05.2019, 28.05.2019 and 06.06.2019, claiming exemption under Serial No. 610 of Notification No. 152/2009-Cus. dated 31.12.2009. More than one year later, the Department issued a Show Cause Notice alleging that the imported goods were not classifiable under Customs Tariff Heading (CTH) 7610 90 10 but under CTH 8480 60 00, proposing recovery of short-levied customs duty of Rs.58,45,395/-.
The adjudicating authority, by Order-in-Original No. KOL/CUS/PORT/JC/19/SIB/2021 dated 28.04.2021, held that the goods were classifiable under Tariff Entry 8480 60 00, denied the exemption under Notification No. 152/2009-Cus. dated 31.12.2009, re-quantified the differential duty at Rs.87,68,095/-, demanded interest, and imposed a penalty of Rs.8,00,000/- under Section 112(a)(ii) of the Customs Act, 1962. The Commissioner (Appeals) dismissed the appellant’s appeal.
Before the Tribunal, the appellant contended that the Department had relied upon the definition of “Formwork” from Wikipedia without obtaining any expert opinion regarding the nature of the imported goods. According to the appellant, the imported goods were Aluminium Formwork Structures used at construction sites on a customised basis for shuttering and structural support in civil construction and could not be regarded as “moulds” under CTH 8480 60 00. The appellant further submitted that the HSN Explanatory Notes relied upon by the Revenue in fact supported classification under Heading 7610.
