Commissioner of Customs Mundra Vs Mittal Pigments Pvt. Ltd. (Supreme Court of India)
Summary: The dispute arose from the classification of imported lead-bearing material by Mittal Pigments Pvt. Ltd. The importer claimed classification as ‘Lead Concentrate’ under Heading 26070000, while the Customs Department treated the goods as lead waste and scrap under Heading 78020090 and demanded the differential customs duty. Before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), the importer relied upon various laboratory reports and contended that the goods had been treated as concentrate in past and subsequent imports. The Department, on the other hand, relied upon other test reports, the appellant’s status as a secondary lead producer, pollution-control registrations and material concerning the nature and processing of the imported goods.
Read CESTAT Order: Imported Lead Powder Classifiable as Lead Concentrate Under Heading 26070000: CESTAT Ahmedabad
The CESTAT Ahmedabad, in its order dated 25 April 2018, considered the rival submissions and the material placed before it. The importer submitted that various test reports supported its claim that the goods were lead concentrate. The Department contended that recovery of lead to the extent claimed was not possible from concentrate and relied upon material indicating that the appellant was a secondary producer of lead and that the goods were connected with lead-acid battery scrap. The Tribunal also considered the distinction between production and import and observed that the appellant’s status as a primary or secondary producer was not decisive for classification of the imported goods. It ultimately held that the imported item fell under Heading 26070000 as ‘Concentrate’, set aside the impugned order and allowed the appeal.
