P.S. Group Realty Pvt. Ltd. Vs Commissioner of Customs (Appeals) (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, allowed three appeals filed against orders confirming customs duty demands arising from the classification of imported aluminium formwork structures with accessories.
The appellant imported consignments of “Aluminium Formwork Structure with Accessories” for home consumption and classified the goods under Customs Tariff Item (CTH) 76109010. The appellant claimed exemption under Notification No. 152/2009-Customs, Sl. No. 610, as amended by Notification No. 66/2016-Customs dated 31.12.2016, and submitted certificates of origin issued by the Korean Chamber of Commerce and Industries. The appellant also paid IGST at 18% by classifying the goods under Sl. No. 271 of Schedule III of Notification No. 01/2017-IGST dated 28.06.2017.
The Department disputed the declared classification and contended that the imported goods were appropriately classifiable under CTH 84806000 as moulds rather than under CTH 76109010 as aluminium structures. According to the Department, the goods were assembled at construction sites, molten concrete was poured into them, and after the concrete solidified the goods were dismantled, removed, and reused. Since the goods did not remain as part of the completed structure and were repeatedly reused, the Department alleged that they possessed the essential characteristics of moulds. Based on this classification, the Department proposed exemption under Sl. No. 780 instead of Sl. No. 610 of Notification No. 152/2009-Customs and maintained that the applicable IGST classification was under Sl. No. 367 instead of Sl. No. 271 of Notification No. 01/2017-IGST. Show cause notices were issued demanding differential duty along with interest and penalty, and the demands were confirmed by the lower authorities.
