Round Ridge Cement tiles Eligible for Customs Duty-Free Import: CESTAT [Read Order]

The Bangalore bench of the Customs Excise and Service Tax Appellate Tribunal ( CESTAT ) ruled that round ridge cement tiles eligible for customs duty-free import.

The appellant M/s. Monier Roofing Pvt. Ltd. had filed the Bill of Entry No.9692851 dt. 27.03.2013 (RMS) declaring the goods as Round Ridge Cement Tiles falling under CTH 68101990. Alleging that the said ‘cement Tiles’ are processed tiles and allowed to be imported free provided the value of the goods is US$ 50 per square meter and above as per Notification No. No.77 (RE-2008)/2004-2009 dated 09.01.2009 issued under Foreign Trade Policy (2009-14), and in the present case the value per square meter being US$6.98 and consequently, it was proposed to confiscate the same under Section 111(d) of the Customs Act, 1962 and enhance the value to US$50. The Appellant resisted the said action of the department through their letter dated 29.03.2013; however, waived issuance of Show Cause Notice.

Consequently, the bill of entry was assessed and it was ordered by the adjudicating authority that in terms of DGFT Notification No.77 (RE2008)/2004-2009 dated 09.01.2009, the value to be adopted is US$ 50 per square meter and directed confiscation of the goods Section 111(d) of the Customs Act, 1962 with an option to redeem the same on payment of fine and imposed penalty. Similar orders were passed for subsequent imports against Bill of Entry No.9968602 dated 26.04.2013 and Bill of Entry No.9886940 dt. 17.04.2013.

 Mr. Rajesh Chandra Kumar representing the appellant has submitted that the DGFT Notification No.77(RE2008)/2004-2009 dated 09.01.2009 does not apply to the product Round Ridge Cement Tiles imported by them since such tiles are not processed tiles of agglomerated or artificial stones.  It is his contention that the said notification has been misinterpreted by the authorities below. These tiles are freely importable; hence goods are to be assessed on the transaction value and the same are not liable for confiscation. It is his contention that the Foreign Trade Policy read with the said Notification No.77 (RE-2008)/2004-2009 dated 09.01.2009 clearly provides for free import of ‘Cement tiles’ falling under CTH 68101990.

It was  restricted only with respect to importation of rough blocks / slabs of agglomerated / artificial stones which is clear from the wordings of the restriction stated in the Policy as “However, import of rough blocks and slabs of agglomerated / artificial stones shall be restricted”.

The bench found that the issue involved for determination was whether the goods viz. Round Ridge Cement Tiles imported by the appellant declaring its value as US$ 6.98/ be allowed free or is to be considered as ‘processed tiles / slabs of agglomerated / artificial stones’ and subjected to the restrictions prescribed under DFGT Notification No.77 (RE-2008)/2004-2009 dated 09.01.2009 and its importation can be allowed only if the value is US$ 50 and above per square meter.

The two member bench of the tribunal comprising D.M Mishra ( Judicial member) and R. Bhagya Devi ( Technical member ) held that the appellants are entitled to import the Round Ridge Cement Tiles free and the restriction applicable to processed tiles as held in the impugned orders cannot be sustained. In the result, the impugned orders are set aside and appeals are allowed with consequential relief

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