Madras HC Confirms Classification of "Upgraded Beneficiated Ilmenite" under 2823 of CTA; Grants Duty Drawback [Read Order]

The Madras High Court, while entertaining the Writ Petition, upheld the decision of the Customs Excise and Service Tax Appellate Tribunal (CESTAT) confirming the product  "Upgraded Beneficiated Ilmenite" falls under 2823 of Customs Tariff Act, 1975. The High Court granted duty drawback.

The petitioner, a company incorporated under the Companies Act, 1956, is involved in the production of various chemicals, including Caustic Soda, PVC resin, and Upgraded Beneficiated Ilmenite. The key point of contention revolved around the classification of the product "Upgraded Beneficiated Ilmenite" under the Customs Tariff Act. The petitioner argued that it should be classified under Customs Tariff Item No.28230090, whereas the Customs Department classified it as Tariff Item 26140020 (Ores, Slag, and Ash).

Read More: Upgraded Beneficiated Ilmenite is synthetic Rutile: CESTAT sets aside Reclassification

The dispute began with the Assistant Commissioner of Customs dismissing the petitioner's classification claim and denying duty drawback. Subsequently, the Commissioner (Appeals) ruled in favour of the petitioner, but the Government of India overturned this decision and reclassified the product under 26140020, again denying duty drawback.

Undeterred, the petitioner filed a writ petition seeking a favourable outcome. The Tribunal played a crucial role in this matter, dismissing the Department's appeal and upholding the petitioner's classification of the product under 28230090. Following this judgment, the proceedings for subsequent exports were dropped by the respondents.

The instant writ petition sought to quash the disputed order and establish the correct classification of "Upgraded Beneficiated Ilmenite" under 28230090. The bench of Justice Srimathy ruled in favour of the petitioner, confirming the classification under Customs Tariff Item No.28230090 and granting the petitioner the corresponding duty drawback.

To Read the full text of the Order CLICK HERE

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