Relief for ITC Ltd: CESTAT Rules Quicklime with 92% Purity Classifiable under ‘Quicklime’, Not as ‘Other Inorganic Chemicals’ [Read Order]
CESTAT held that quicklime with 92% purity must be classified under “Quicklime” (CTI 2522 1000) and not under “Other Inorganic Chemicals” (CTI 2825 9090), allowing ITC Ltd.’s appeal
quicklime - Taxscan
quicklime - Taxscan
The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that quicklime with 92% purity is classifiable under “Quicklime” (Customs Tariff Item 2522 1000) and not as “Other Inorganic Chemicals” under 2825 9090.
ITC Ltd., the appellant, imported goods described as PCC Lime (Quicklime) and declared them under Customs Tariff Item 2522 1000. The assessing officer reclassified the imports under 2825 9090, treating them as inorganic chemicals, and the Commissioner (Appeals) upheld this decision. Aggrieved, ITC approached the CESTAT.
The appellant’s counsel argued that the goods were quicklime falling squarely under the specific entry 2522 1000. They explained that according to the Harmonised System of Nomenclature (HSN) notes, quicklime of less than 98% purity belongs to Chapter 25, while only highly purified calcium oxide of 98% or more falls under Chapter 28.
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The chemical tests showed a purity of 92%, so the goods could not be placed under the residuary entry 2825 9090. They relied on earlier tribunal rulings, including Bhadradri Minerals, JSW Steel, and Viraj Profiles, which had settled the issue.
The revenue counsel argued that the goods were calcined products and hence fell under Chapter 28 as chemically defined compounds. They supported the Commissioner (Appeals) finding that the imports were rightly assessed under 2825 9090.
The two-member bench comprising Ashok Jindal (Judicial Member) and Sanjiv Srivastava (Technical Member) observed that quicklime with less than 98% calcium oxide is classifiable under 2522 1000.
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The tribunal pointed out that 2522 is a specific entry for quicklime, whereas 2825 9090 is only a residuary entry and classification rules require preferring the specific heading. The tribunal explained that the purity in this case was only 92%, so the imports could not be considered highly purified calcium oxide to fall under Chapter 28.
The tribunal set aside the impugned orders and allowed ITC’s appeals, granting consequential relief as per law.
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