Broom Sticks made Solely of Plastic, without Vegetable Materials are Taxable: CESTAT remands matter to decide Nature of goods [Read Order]

In the case of Rajat International, the Ahmedabad bench of the Customs Excise and Service Tax Appellate Tribunal (CESTAT) remanded the matter to decide the nature of goods, stating that Boom sticks made solely of plastic, without vegetable materials, are taxable.

This appeal has been filed against confirmation of demand of Customs duty, interest and penalty.

Mr. Naveen Bindal representing the assessee pointed out that the assessee had imported broom sticks which were classified by the appellant under customs tariff heading 9603 1000. The appellant claimed IGST exemption under Sr. no. 144 of Notification No. 02/2017 dated 28.06.2017 prescribing NIL IGST rate under Sr. no. 144 of the notification. 

Further pointed out that the department had finally assessed the bills of entry filed by them. If the department was aggrieved with the said assessment they should file an appeal before the Commissioner (Appeals). Further argued that the department failed to challenge the assessment order and therefore the said assessment has attained finality

 Further argued that the proceedings have been initiated against the appellant in the course of audit conducted by Customs revenue audit. On the basis of said audit notice was issued to the appellant raising demand of duty, interest and imposition of penalty

The single member bench comprising Somesh Arora (Judicial member) found that broomsticks which are made up of plastic and do not use a vegetable material alone are taxable w.e.f 22.09.2017 in Notification No. 01/2017 since after amendment, the Broomsticks fall under Serial No. 260 of Notification No. 01/ 2017 have to be of other than Chapter Heading No. 96031000 and therefore have to be Broomsticks of other than twigs and such vegetable materials.

 Since, the show cause notice has not taken note of development through above stated amendments, therefore in the instant case, Commissioner (Appeals) while deciding  classification should keep above discussion in mind while working into demand period and related statutory changes. It should first decide about the nature of Broomsticks/brooms and its classification with statutory changes.

Matter was accordingly remanded back to decide the nature of goods. Appeal allowed by way of remand.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates