High Court can't answer classification of products under Customs Tariff Act as it requires Technical Analysis: Calcutta HC [Read Order]

The Calcutta High Court(HC)held that High Court can't answer the classification of products under the Customs Tariff Act as it requires Technical Analysis by technical experts.

M/s. Harsh Polyfabric Pvt ltd, the petitioner has challenged the impugned order dated 31st October 2019, passed by the Appellate Authority under the relevant provision of West Bengal Goods and Services Tax Act and Rules, 2017.

The petitioner sought adjudication on the issue as to under which Chapter and which classification of the Customs & Central Excise Tariff Act its product will fall and declaration to this effect and it has challenged the findings of the Appellate Authority in its impugned order where it has been held that petitioner’s claim on PPSB bed sheet is produced in a finished stage by processing the non-woven fabrics manufactured by the petitioner.

The Appellate Authority viewed that the petitioner does not consume PP granules directly in the manufacturing of bed sheets instead non-woven fabric in manufacturing for PP granules is used by it which is used in the manufacturing of PPSB bed sheets.

The petitioner has declared that its product should be under the classification list in Chapter 63 of the Customs Tariff Act and HSN Code 63041930 and the petitioner submitted in its return 5% of GST on its sale.

It was held that under the Customs and Central Excise Tariff Act, the articles in question are covered under Chapters 56 to  62 and are not covered under Chapter 63 and it also held that “Non- woven Fabric” and “PSB Bed Sheet” manufactured of non-woven fabric are the same textile fabric and therefore the bed sheet manufactured by the petitioner should be considered in Chapter 56 03 at par with “Non-woven Fabric” and to be taxed at the rate of 12%.

A Single member consists of Justice Md. Nizamuddin observed that the Writ court can’t act as an expert to scrutinise the composition and mode of manufacture of a product of this nature and do the job of classifying a product as to under which classification list of the Customs Tariff Act such product falls since it requires scientific and technical analysis to be conducted by experts in such scientific and technical field.

It was observed that only scientific and technical expertise can give any opinion as to the nature of the material used and method of manufacturing involved in the production of the articles in question and after taking into consideration the aforesaid scientific and technical aspect, appropriate Authority under the law can conclude and make a declaration as to under which heading of the classification list product in question will fall. The court dismissed the appeal.

To Read the full text of the Order CLICK HERE

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