The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) held that remelted zinc classifiable as zinc alloy and customs duty is leviable at 7.5%.
A show cause notice dated 25.10.2019 was issued to the Appellant alleging that based on the content of zinc in the disputed goods, the goods should be classifiable as “zinc alloys” under CTH 7901 20 90 wherein customs duty leviable is at 7.5% and not under the heading which has been preferred by the Appellant that is as “Zinc not alloyed” under CTH 7901 12 00.
The Department has confirmed the demand of differential duty amounting to Rs. 3,74,518 under section 28(1) of the Customs Act, 1962. The Learned Commissioner ( Appeals ) vide order in appeal No. MUN/CUSTM/000/APP/151 – 21-22 dated 15.09.2021 has upheld the findings of the lower authorities.
Hardik Modh, Counsel appearing on behalf of the Appellant has made submissions as regards the test report relied on by the Commissioner ( Appeals ). The counsel submitted that the Commissioner (Appeals) has relied on the test reports of the sample drawn through metal gun and classified the disputed goods under CTH 7901 20 90 whereas they should have considered taking samples from the said consignment for testing that the substantive procedure was not followed by the department.
A.R. Kanani, Superintendent ( AR ) appearing on behalf of Revenue has reiterated findings of the impugned order.
A Two-Member Bench comprising Ramesh Nair, Judicial Member and Raju, Technical Member observed that “We observe that there was no foul in the department’s reliance on the test reports in furtherance of ascertaining the classification of the goods in dispute. Therefore, the adjudicating authority was not wrong in re-classifying the disputed goods under CTH 7901 20 90. The classification of the goods by the Department is proper and needs no interference. The judgments cited by the Appellant in support of their claims are based on facts and circumstances entirely different from that in the present case therefore cannot be relied upon.”
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