Hindustan Unilever Ltd. Vs Commissioner of Customs (CESTAT Chennai)
Summary: The three appeals were heard together by the CESTAT Chennai as they involved an identical issue. Appeal Nos. C/41635/2015 and C/41636/2015 challenged Order-in-Appeal Nos. 432/2015 and 433/2015, both dated 24.04.2015, which upheld Order-in-Original Nos. 2/2014 and 1/2014, both dated 14.10.2014. Appeal No. C/41986/2015 challenged Order-in-Appeal No. 566/2015 dated 26.06.2015, which upheld Order-in-Original No. 35347/2015 dated 25.02.2015 confirming demand of duty along with penalty.
The appellant had filed Bills of Entry for import of “Lauric Acid”, classifying the goods under Tariff Item 29157090 and seeking clearance on payment of applicable duties. Revenue took the view that the goods were classifiable under Tariff Item 29159090 under “Other”. Revenue further considered the goods assessable to Basic Customs Duty at 7.5% vide Sl. No. 553 of Notification No. 21/2002-Customs, with Additional Duty of Customs at 10% and SAD at 4%. According to Revenue, the incorrect classification had resulted in short levy of duty. :contentReference[oaicite:0]{index=0}
Show cause notices were accordingly issued proposing reclassification under Tariff Item 29159090 under “Other”. The appellant filed replies and was afforded opportunities of personal hearing. The Original Authority noted that the importer had filed written submissions and an opinion of a retired Professor, but had not furnished technical details when called upon to do so. The Original Authority therefore considered the competing tariff headings and rejected the declared classification, confirming the proposed reclassification under Tariff Item 29159090 through the respective Orders-in-Original.
