The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that canned pineapple slices are classifiable under CTH 0804, Attracts 30% customs Duty.
The issue to be decided was whether The Adjudication Authority erred in classifying Canned Pineapple Slices under 0804 attracts 30% Customs Duty.
Holy Land Marketing Pvt. Ltd. was under investigation for allegedly misclassifying “Canned Pineapple Slices” and wrongly claiming customs duty exemptions. A search on 17.03.2021 triggered a disputed order with imposed duties and penalties. The appellant asserted proper classification, highlighting the canning process and non-freezing nature of the product.
The appellant’s counsel, Anup Kumar Srivastava, argued that adjudication proceedings are flawed due to a show cause notice’s irregular handling. He challenged the extended period invocation, emphasizing settled law on classification disputes. Inconsistencies in classification opinions by customs officials contribute to a complex legal battle.
The appellant’s legal battle over the classification of canned pineapple slices unfolds with conflicted views and a complex journey. Despite CESTAT’s rejection, the appellant challenged an extended period and penalties, citing legal precedents and inconsistencies, highlighting the lack of evidence and questioned the department’s burden of proof.
The Respondent Counsel Girijesh Kumar argued that canned pineapple slices, non-frozen and akin to fresh ones, should be classified under CTH 0804 3000, not CTH 0811 for frozen fruit. Citing Supreme Court precedent, he stressed the appellant’s duty to self-assess correctly, and supported reclassification under CTH 08043000.
The adjudicating authority’s decision to confirm duty demands and penalties was defended amid the classification dispute for 2020–21. The explanatory notes clarified criteria, confirmed non-frozen status, supported by the Director’s statement on the preservation process.
The two-member bench of the Tribunal comprising Dr Rachana Gupta (Judicial Member) and Hemambika R Priya Member (Technical Member) concluded that classification of the canned pineapple slices would be CTH 0804. However, the demand for differential duty is limited to the normal period only.
The interest would accordingly be reduced proportionately. The penalty under Section 114A was set aside. The impugned order is modified to the extent indicated above and the appeal was partly allowed by the bench.
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