Mittal Pigments Pvt. Ltd. Vs Commissioner of Customs (CESTAT Ahmedabad)
Summary: The appeal was filed against order-in-original No. 17-18/2017-18 dated 16.02.2018 concerning the classification of imported waste and scrap of lead in powder form. The appellant had claimed classification of the imported goods as ‘Lead Concentrate’ under Heading 26070000, attracting duty at 2.5%, whereas the Department treated the goods as lead waste and scrap under Chapter Heading 78020090 and charged duty at 5%. The appellant submitted that the same item had been treated as ‘Concentrate’ by the Department in the past and future imports and relied upon various laboratory test reports, including reports which supported classification as lead concentrate.
Read SC Order in this case: Supreme Court Remands Mittal Pigments Customs Classification Matter to CESTAT
The Department, however, contended that 99% recovery was not possible in the case of lead concentrate and relied upon the appellant’s status as a secondary producer of Lead, pollution-control registrations and test reports describing the material as scrap of Lead Acid Battery. The Tribunal considered the rival submissions, the test reports and other material on record. It observed that the dispute concerned the imported item and that the appellant’s status as a primary or secondary producer was not relevant to classification of the imported goods. The Tribunal noted that, in the past and future, the same item had been treated by the Department as ‘Concentrate’. On consideration of the test reports and other material, the Tribunal held that the imported item fell under the classification of ‘Concentrate’ under Heading 26070000. It accordingly set aside the impugned order and allowed the appeal in favour of the appellant.
