Customs Excise & Service Tax Appellate Tribunal ( CESTAT ) has held that Mere mention of “Food Supplement” in the description in Bill of Entry or FSSAI is not decisive in the classification of the product.
The assessee, M/s Health and Happiness ( H&H ) Trading India Private Ltd. had misclassified the products under incorrect chapter heading and that the correct classification is under Chapter Heading 1504 which reads as “Fats and oils and their fractions, of fish or marine mammals, whether or not refined, but not chemically modified”. The Chapter Heading 15042020 specifies ‘Fish lipid oil’
The assessee contended that the Appellant imported the products under dispute i.e. Fish Oil for the first time and inadvertently misclassified them under CTH 2106 90 90, when the correct classification is CTH 15042020. The assessee contended that in order to correct the classification, they have filed the appeals. Assessee contended that the they cannot be denied the relief from claiming the correct and legal classification of the goods imported by them, as there is no estoppel in Law against a party in taxation matters.
Revenue contended that the assessee had mentioned “Food Supplement” in the description in Bill of Entry or FSSAI. Revenue contended that the assessee had done so with the intention of avail CENVAT credit and in order to avoid paying taxes. Revenue prayed for sustaining the impugned order.
The bench comprising Sulekha Biwi C.S ( Member, Judicial ) and Vasa Seshagiri Rao ( Member, Technical ) held that the ingredient of the product clearly shows that they are Oils of Fish and the same are rightly classifiable under CTH 15042020. The bench observed that “CTH 2106 90 99 is a residuary entry for food preparations/ supplements which are not specified under any other heading. Even assuming that products imported by the Appellant are food supplements, they would still be classifiable under CTH 1504 20 20 as it specifically provides for the classification of Fish Oil.” The impugned order was set aside.
The assessee was represented by T.Shreyashree. Revenue was represented by Anandalakshmi Ganeshram.
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