Omya India Private Limited Vs Commissioner of Customs (NS-I) (CESTAT Mumbai)
The CESTAT Mumbai decided an appeal challenging the Order-in-Appeal dated 12.07.2023, which had upheld the reclassification of imported goods described as “Burgess Calcined Aluminium Silicate” from Customs Tariff Item (CTI) 2507 0029 to CTI 2839 9090. The importer had classified the goods under CTI 2507 0029 and claimed exemption under Serial No. 120 of Notification No. 50/2017-Customs dated 30.06.2017. Following first check examination, samples were tested by the Central Revenue Control Laboratory (CRCL), which reported that the goods were mainly composed of aluminium silicate with trace amounts of titanium, calcium and iron, described as processed calcined clay. Based on the test report, the department revised the classification to CTI 2839 9090. The importer paid the differential duty after reassessment but challenged the reclassification in appeal.
Before the Tribunal, the appellant submitted that the imported product was commercially known as kaolin clay or china clay and consisted of natural aluminium silicate obtained through washing, spray drying and calcination of natural kaolin clay without chemically altering the substance. The overseas supplier stated that the processing only enhanced brightness and performance and did not involve addition of minerals or chemical alteration. The department relied upon the chemical test report and the findings of the Commissioner (Appeals).
