Claim of Classification of Calcite powder and Precipitated Calcite Carbonate cannot be Reject without cogent Reason: CESTAT [Read Order]

The Ahmedabad Bench of Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) has held that the claim of classification of calcite powder and precipitated calcite carbonate cannot be rejected without cogent reason.

Oasis Impex, the appellant filed an appeal against the re-classification of the product imported by them. The appellant pointed out that they had imported calcite powder (uncoated). The revenue reclassified the product as calcite powder (uncoated). The reclassification was done on the strength of the Chemical Examiners Report. All the Chemical Examiners Reports have been placed on records by the revenue. Learned Counsel pointed out that at the material time as per F.N. 401/243/2016-Cus-III dated 16.11.2017, the Customs Laboratory did not have the facility to test the “Precipitated Calcium Carbonate”.

A two-member bench Mr Raju, Member (Technical) and Mr Somesh Arora, Member (Judicial) observed that since the test report of CRCL Vadodara/Delhi cannot be accepted the declaration made by the appellant with respect to the nature of goods, classification and also valuation are found to be correct. 

In the case of Asian Granito India Ltd, the tribunal held that “We have carefully considered the submissions made by both the sides and perused the records. We find that the appellant had claimed at the threshold that the Kandla Customs Lab is not equipped to conduct a test on Calcite Powder and even the drawl of the sample was also disputed as being an importer. In general, it is true that the report of CRCL cannot be brushed aside lightly, however, when CBEC itself categorically admits that for calcite powder, their Labs were not equipped to test the same till 2019, as evident from Circular No.43/2017-Cus., dated 16-11-2017 as also Circular No. 15/2019-Cus., dated 7-6-2019, the Kandla Customs Chemical Lab reports as relied upon in the impugned order have to be discarded. The various case laws as relied upon by the Appellant, duly based on the said Board Circular dated 16-11-2017, in the context of classification of calcite powder and precipitated calcite carbonate, are well founded and apply to the present case on all fours. The present case is identical to that in the case of 20 Microns (supra) as well as Manikya Creations and Pavas Polychem (supra). It therefore must be held that in the absence of any independent cogent evidence to reject the classification under CTH 2503 90 30 as claimed by the Appellant, the claim of the revenue to classify the very goods under CTH 2836 50 00 has no support and must fail.” The CESTAT set aside the order and allowed the appeal.

To Read the full text of the Order CLICK HERE

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