Classification Dispute of 'Engineered Quartz Stone': Supreme Court considers Revenue’s Challenge [Read Judgement]
The Supreme court condoned the delay and admitted the appeal filed by the Custom Department for classification dispute of Engineered Quartz Stone
Supreme Court,
Supreme Court,
The Supreme Court of India has admitted civil appeals filed by the Commissioner Customs (Preventive) Jaipur against M/s Pelican Quartz Stone in a dispute concerning the classification of exported goods, 'Engineered Quartz Stone'. The appeals arise from a final judgment and order passed by the Customs Excise Service Tax Appellate Tribunal (CESTAT).
The dispute centers on a show cause notice (SCN) issued by the Directorate General of Revenue Intelligence (DRI) to M/s Pelican Quartz Stone (assessee) and proposed to reject the assessee's declared classification of 'Engineered Quartz Stone' under Customs Tariff Item (CTI) 68159990 for goods exported in 2017 and 2018, and to re-assess them under CTI 68101990.
The department also imposed penalties on the assessee. The original order (Order-in-Original) by the Commissioner of Customs (Preventive) Jodhpur confirmed the proposals for re-classification, confiscation, and penalty on the assessee under Section 114(iii), but dropped the demand for duty recovery under Section 28AAA and penalties on the partner, Shri Kabra.
GST on Real Estate & Works Contracts – Your Ultimate Guide to GST in the Real Estate Sector!, Click Here
Both the Revenue and M/s Pelican Quartz Stone appealed the Commissioner's order to the Customs, Excise & Service Tax Appellate Tribunal (CESTAT).
The CESTAT comprised Justice Dilip Gupta (President) and P. V. Subba Rao (Member (Technical)), delivered the order and held that the SCN was issued without any authority of law to re-assess the Shipping Bills after the goods had already been exported and assessed to 'NIL' duty.
The tribunal clarified that once goods are exported, there can be no re-assessment, and the only remedies for Revenue are an appeal under Section 128 or a Show Cause Notice under Section 28, which is only for recovering unpaid duty.
In conclusion, the Tribunal set aside the impugned order, allowing the assessee's appeal and dismissing the Revenue's appeal. Aggrieved by the CESTAT's decision, the Revenue filed a Civil Appeal with the Supreme Court.
The bench comprising Justice Mr. J.B. Pardiwala and Justice Mr. K.V. Viswanathan condoned the delay in filing the appeals and admitted the appeals. The matter will now be heard on its merits by the apex court.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
