10% Customs Duty applicable on Hollow Products: CESTAT [Read Order]

Custom Duty - hollow products - CESTAT - taxscan

The Customs, Excise, Service Taxes Appellate Tribunal (CESTAT), Ahmedabad Bench ruled that 10% Customs Duty Applicable on hollow products.

The appellant, Technocraft Enterprise imported goods declared as 700x 357x 700 SAE 52100 hot forged, spheroidized annealed, proof machined, hollow UT 100% ok as per standard sep 1921 c/c steel round bars (10 pcs) and 622 x 337x 700 SAE 52100 hot forged, spheroidized annealed, proof machined, hollow UT 100% ok as per standard sep 1921 c/c steel round bars (8 pcs).

The appellant claimed classification under Customs Tariff heading 72284000 of Customs Tariff Act, 1975 seeking benefit of Exemption Notification 21/2002-Cus dated March 1, 2002 (Serial No. 207) at 5% basic Customs Duty. Revenue on examination of goods disputed the classification declared by the appellant i.e. Customs Tariff Heading 72284000. On being asked to declare full description of the goods so as to justify classification/notification claimed the appellant vide Letter dated 10.07.2010 also declared full description of the goods and requested to finalize the assessment under Chapter Heading 72249099 as “other Alloys Steel Ingot and Other Primary Form, semi-finished product and other Alloys” instead of Customs Tariff Heading 72284000 which they had earlier claimed.

On examination the goods were found to be Tubes Hollow. The adjudicating authority relying on Chapter Note 1(p) held that the goods cannot be classified under chapter 72 and ordered classification of the said goods under Chapter Tariff Heading 73049000 of Customs Tariff Act,1975 and ordered the appellant to pay duty accordingly.

The said order of the adjudicating authority was upheld by the Commissioner (Appeals). Aggrieved by the said order of Commissioner (Appeals), the appellant is before the Tribunal.

The coram of Ramesh Nair and Raju noted that the products covered are those having uniform solid cross sections along their whole length. In the instant case the product does not have a solid cross section and therefore, Chapter Note 1(m) has no application.

The CESTAT held that the hollow products give dimensional parameters necessary for the product to fall under Chapter Heading 7304. The product imported by the appellant, therefore, automatically gets classified under Chapter Heading 7304.

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