Pump for Lotion Dispenser not Scent Spray or Toilet Spray, BCD leviable at rate of 7.5%: CESTAT [Read Order]

CESTAT holds hat pump for lotion dispenser not scent spray or toilet spray and BCD is leviable at rate of 7.5%
CESTAT - CESTAT delhi - BCD - Lotion pump dispenser - taxscan

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) held that pump for lotion dispenser not scent spray or toilet spray and hence basic customs duty ( BCD ) is leviable at rate of 7.5%.

The appellant as an importer filed a Bill of Entry ( self assessed ) for clearance of goods declared as “Pump-1.200-GS-THREAD-28/410-2N-192.0 ( Pump for lotion dispenser )” after classifying the goods under CTH 84248990 with BCD leviable at the rate of 7.5%.

The Appraising Group-V/Deputy Commissioner of Customs held that the impugned goods i.e. “Pump-1.200-GS-THREAD-28/410-2N-192.0 ( Pump for lotion dispenser )” imported are correctly classifiable under CTH 84132000 which provides in pertinent part, for “Pump-1.200-GS-THREAD-28/410- 2N-192.0 ( Pump for lotion dispenser )”: Handpumps other than those of subheading 8413.11 and 8413.19 and are liable to be assessed accordingly.

The Departmental Representative has mentioned that in the instant case, the importer has classified the gods under CTH 84248990 and Commissioner ( Appeals ) has classified the same under CTH 84249090 which is not correct since items are intended for use in smaller containers with smaller necks for spraying small quantity for material like fragrance, liquid soaps or pharmaceutical medicines and the said chapter heading does not include scent sprays, similar toilet sprays and their mount and head.

While rebutting these submissions the counsel for the appellant has mentioned that the impugned goods are rightly been declared under CTH 84248990 which include mechanical appliances ( whether or not hand operated ) for projecting, dispersing or spraying liquids or powders-other. CTH 8413, on the other hand, cover pumps which are intended for industrial applications and which are capable of continuously displacing volumes of liquids whereas the product in question is a pump for dispersing small amount of lotion ( a cosmetic ).

The counsel has further mentioned that the perusal of Heading pertaining to CTH 8424 discloses that the liquid dispensers and spray pumps ( other than scent sprays and toilet sprays ) would get covered under the Tariff Item pertaining to ‘other’ under the sub Heading in respect of ‘other appliances’ under CTH 84248990. Hence, CTH 9616 was wrongly proposed by the Shed Officer.

A Two-Member Bench comprising Dr Rachna Gupta, Judicial Member and Hemambika R Priya, Technical Member observed that “We hold that the product in question is a pump for displacing and dispersing the lotion/cream. Hence, it is definitely not a scent spray or toilet a spray ( CTH 9616 ). It is a pump but not the one under 8413 where the pumps meant only for displacement of liquids are covered. The goods in question is held to be covered under CTH 84248990 being the pumps meant not only for displacing the liquid/lotion but for simultaneously dispersing the same.”

“Hence we hold that classification made by the respondent-assessee in the Bill of Entry No. 7818002 dated 03.06.2020 is the correct classification i.e. the pumps imported by the appellant are classifiable under CTH 84248990. Hence, the Order-in-Appeal is hereby set aside which classified the impugned pump under CTH 84249090. However, the appeal filed by the department still stands dismissed as they have prayed for impugned pump to be classified under CTH 8413” the Tribunal noted.

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