The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the classification of stainless steel tube fittings as the chapter heading of the first schedule under the Customs Tariff Act, 1975 on the ground of incorrect classification.
Bombay Fluid Systems Components Pvt Ltd, the appellant assessee appealed against the order passed by the Commissioner of Customs (Appeals) for incorrect classification of goods of the assessee.
Viswanathan and Anjali Hirawat, the counsels for the assessee contended that the first appellate authority had determined that the goods are neither ‘flanges, threaded elbows, bends and sleeves’ leaving no option but to resort to the residual entry.
Further submitted that the explanatory notes of heading 7307 of First Schedule to Customs Tariff Act and the general rules for Interpretation of the Tariff classified the incorrect goods without considering the meaning of the chapter heading.
K Hatangadi, the counsel for the revenue contended that the classification made by the lower authorities was as per the law and liable to be sustained.
The bench observed that the lower authorities had not given any justification for discarding the claim by the assessee or preferring the revised one over the declared one.
The two-member bench comprising S.K Mohanty (Judicial) and C.J. Mathew (Technical) quashed the classification made by the lower authorities while allowing the appeal filed by the assessee.
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