In a recent case, the Calcutta High Court observed that writ courts do not act as an expertise in scrutinising on the classification of products under the Customs Tariff Act and dismissed the Writ Petition ( WP ).
M/S Harsh Polyfabric Pvt Ltd, the petitioner has challenged the impugned order passed by the Appellate Authority under the relevant provision of West Bengal Goods and Services Tax Act and Rules, 2017.
The petitioner seeks adjudication on the issue as to under which Chapter and which classification of the Customs & Central Excise Tariff Act its product will fall and declaration to this effect.
It has challenged the findings of the Appellate Authority in its impugned order where it has been held that the petitioner’s claim on the PPSB bed sheet is produced in a finished stage by processing the non-woven fabrics manufactured by the petitioner. It was the findings of the Appellate Authority that the petitioner does not consume PP granules directly in the manufacturing of bed sheets instead non-woven fabric in manufacturing for PP granules is used by it which is used in the manufacturing of PPSB bed sheets.
The petitioner has declared that its product should be under the classification list in Chapter 63 of the Customs Tariff Act and HSN Code 63041930 and the petitioner submitted in its return 5% of GST on its sale. An aforesaid claim of the petitioner has not been accepted by the Appellate Authority by holding that under the Customs and Central Excise Tariff Act articles in question is covered under Chapters 56 to 62 and is not covered under Chapter 63 and it also held that “Non- woven Fabric” and “PSB Bed Sheet” manufactured of non-woven fabric are the same textile fabric and therefore the bed sheet manufactured by the petitioner should be considered in Chapter 56 03 at par with “Non-woven Fabric” and to be taxed at the rate of 12%.
The court viewed that the writ court should not act as an expertise to scrutinise the composition and mode of manufacture of a product of the nature and do the job of classifying a product as to under which classification list of the Customs Tariff Act such product falls since it requires scientific and technical analysis to be conducted by expertise in such scientific and technical field.
Only scientific and technical expertise can give any opinion as to the nature of the material used and method of manufacturing involved in production of the articles in question and after taking into consideration the aforesaid scientific and technical aspect, appropriate Authority under the law can come to a conclusion and make a declaration as to under which heading of the classification list product in question will fall.
Justice Md. Nizamuddin observed that there is no violation of principles of natural justice has been committed or any procedural irregularity committed by the authority in passing the impugned order or violation of any specific statutory provision of law has been committed by the Appellate Authority concerned in passing the impugned order.
While dismissing the appeal, the court granted liberty to raise the issues before the Appellate forum or Tribunal when it will be available.
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