Rejecting Appeals without deciding issue on Classification of imported Insoluble Sulphur: CESTAT directs Re adjudication [Read Order]

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) directed readjudication after finding that the appeal was rejected without deciding the issue on  classification of imported insoluble sulphur.

The Appellant Midas Treads (India) Pvt. Ltd. imported 7,000 Kgs of insoluble Sulphur from Germany . They have declared the goods imported as insoluble Sulphur with trade name “Crystex HS OT 20 which is used as vulcanising agent for rubber. The assessing authority rejected the classification claimed by the appellant and assessed the goods finally under CTH 3812.30.30. Accordingly passed the assessment order.

Aggrieved by the order the appellant filed an appeal before the Commissioner(Appeals). The Commissioner(Appeals) , without deciding the classification on merit, rejected their appeals on the ground that no request had been made by the appellant for speaking order by the assessing officer. Hence the appellant filed another appeal before the tribunal

Abraham Markos, Counsel for appellant submitted that the assessing officer has wrongly rejected their classification under CTH 2503.00.90 and classified the product under CTH 3812.30.30 when all the relevant documents and invoices clearly show that the goods are classifiable under CTH 2503.00.90 being insoluble Sulphur.

Further the counsel argued that the Commissioner (Appeals) without going into merits of the case on a mis-interpretation of Section 17(5) of the Customs Act, 1962 observing that the appellant had accepted the reclassification of the product; rejected their appeals.

K. Vishwanatha, Counsel for the department, supported the order of lower authorities.

It was observed by the tribunal that after rejection of the classification of the appellant declared in their Bills of Entry, they paid the duty under protest and preferred appeal before the learned Commissioner(Appeals).

Therefore the Commissioner(Appeals) ought to have decided the appeals on merits instead of rejecting the same by observing that the appellant has accepted the re-assessment.

A Two-Member Bench comprising D.M. Misra, Member ( Judicial Member ) and R. Bhagya Devi, (Technical Member) set aside the assessment order and remanded to Commissioner(Appeals) to decide the issue of classification on merit, after affording an opportunity of hearing to the appellant.

To Read the full text of the Order CLICK HERE

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