2024-VIL-287-CESTAT-BLR-CU
  1. Home
  2. 2024-VIL-287-CESTAT-BLR-CU

CUSTOMS CESTAT Cases

Customs – Section 28(1) of Customs Act, 1962 – Import of goods – Classification – Appellant filed Bill of Entry for import clearance of goods declared as Rotary Power Weeders by classifying same under CTH 84322990 and claiming exemption under Notification No.12/2012-Cus @2.5% BCD & nil CVD – Department alleged that Appellant has mis-declared Brush Cutters as Power Weeders and mis-classifying goods under CTH 8432 2990 instead of appropriate classification under CTH 8467 8990 thereby evading duty – Adjudicating authority rejected classification claimed by Appellant and demanded differential duty in terms of Section 28(1) of the Act – Whether goods imported by Appellant are ‘Power Weeders’ or Brush Cutters’ – HELD – On verification by department, products were mentioned as Agrimate and on package, it was mentioned as “this cutting blade is designed exclusively for brush cutter” – Commissioner in impugned order has clearly brought out difference between power weeder and brush cutters – Power weeders are devices used for removing weeds, stirring, pulverizing and for loosening soil before the crop is grown, while brush cutters are used for clearing thick grass, brush and shrubs – Based on descriptions and literature placed along with manuals, it is very clear that item imported is a brush cutter – Appeal partly allowed - Rejection of declared classification – Whether imported goods are classifiable under CTH 8432 as claimed by Appellant or under CTH 8467 as claimed by Revenue – HELD – Claim of Appellant is that product is classifiable under CTH 8432 2990, since this product is meant for agricultural purposes and cleared to farmers and its use for agricultural purposes has been supported by certificates issued by University of Agricultural Sciences – Use of product for agricultural purpose cannot be the criterion for determination of appropriate classification – Hand tools explained in explanatory note under CTH 8467 includes ‘brush cutters’, hence, product in dispute would fall under CTH 8467 – Impugned goods are classifiable under CTH 8467 as brush cutters - Concessional rate of duty – Denial of benefit – Whether Notification No.12/2012 granting benefit of concessional rate of duty is applicable to brush cutters – HELD – Machinery mentioned in above notification are all those machineries, namely weeder, planters, transplanters, rotary tiller and root tuber harvesting machine which are specifically designed and used for purpose of agriculture and brush cutters are nowhere to be considered a machinery – Notification No.12/2012 is available only for items listed therein and it allows only rotary tiller/weeder and not brush cutters – Since it is already decided that item imported is a brush cutter, question of extending benefit of Notification does not arise - Invoking of extended period of limitation – Raising of demand – Whether invoking of extended period of limitation is justified in facts and circumstances of case – HELD – Though it is admitted by Appellant that they were aware about fact that power weeder is a machinery, they have obtained expert opinion from different sources to make proper preparation regarding classification – Goods were subjected to examination by proper officer of Customs and burden to prove that an article falls under a particular entry lies upon Revenue – In absence of any specific averments regarding wilful suppression of fact on part of Appellant, extended period of limitation cannot be invoked – Invoking of extended period of limitation cannot be sustained – Duty demand is confirmed only for normal period.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

Income Tax Deductors/Collectors...
CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?