2013(01)LCX0210
IN THE CESTAT, SOUTH ZONAL BENCH, CHENNAI
S/Shri P.K. Das, Member (J) and Mathew John, Member (T)
BEML ltd.
Versus
Commissioner of Customs (Seaport-Import), Chennai
Misc. Order No. 40248/2013, dated 15-1-2013 in Application No. C/Stay/133/2010 in Appeal No. C/173/2010
Advocated By -
Shri R. Parthasarathy, Advocate, for the Appellant.
Shri M. Rammohan Rao, Dy. Commissioner (AR), for the Respondent.
[Order per : Mathew John, Member (T)]. -
The appellants are engaged in manufacturing of bulldozers which run on track shoes. Track shoe is made out of hot rolled sections of length 560 mm which are joined together to form the track shoes.
2. For their manufacturing operations they imported certain consignments of goods and declared the goods to be "Track shoes section hot rolled of length 560 mm."
The appellants proposed to classify under Heading 7228 70 11 and the goods were cleared under risk-management system of the customs computer that is without assessment by any officer. Later when the Bill of Entry was scrutinized on the basis of invoice and other documents furnished along with the Bill of Entry, Revenue was of the view that the goods cleared were in fact parts of bulldozers and should have been classified under Customs Tariff Item 8431 49 90. Such re-classification would result in a short-levy of duty. Therefore, proceedings were initiated for recovery of duty short-paid and on adjudication of the matter classification is decided to be under 8431 49 90 and an amount of Rs. 13,38,951/- is demanded along with interest.
The adjudication order got confirmed in first appeal also and aggrieved by the order of the Commissioner (Appeals), the appellants have filed this appeal before this Tribunal along with an application for waiver of pre-deposit of dues for admission of appeal.
The counsel for the appellant submits that they import hot rolled steel sheets of sizes suitable for cutting track shoes of the required size. The entire process of cutting shoes to the required size, drilling holes on it and making notches to join the shoes is done in their factory. It is their contention that the goods imported fit exactly into the description of CTI 7228 70 11. In fact the entry with prefix "-" which precedes the said entry is for "Angles, shapes and sections not further worked than hot-rolled, hot-drawn or extruded". Since CTI 7228 70 11 has to be only a further split of-split of that entry. So his contention that only when the track-shoes are cut to size and holes are drilled into it, the track shoes are made suitable for use as part of bulldozers. He submits that he has been importing this product prior to the impugned consignment and in all cases the goods were classified under CTI 7228 70 11 and there is no reason to change the classification.
Opposing the prayer, the learned Authorized Representative for the Revenue submits that in other cases the supplier was different from the supplier in the case of the impugned goods. The invoice presented for clearing this consignment shows part number which would indicate that the goods were imported as parts of bulldozers and therefore it srtould be classified under Chapter 84.
As a rejoinder, the counsel submits that when the orders are placed they indicate their part number so that from the stage of supply of order till its use, the material is tracked properly and no inference about the nature of goods imported should be drawn from the part number indicated.
Considering the submissions of both sides, prima facie, we are of the view that the Revenue has not been able to show that the goods imported were goods other, than hot rolled sections. There is nothing to suggest that the goods when imported had a nature of parts of tractors. Therefore, the classification originally adopted for clearing the goods appears to be correct. Therefore, we grant waiver, of pre-deposit of dues arising from the impugned order and stay its collection during the pendency of the appeal.
(Dictated and pronounced in open Court)
Equivalent 2013 (298) ELT 0068 (Tri. - Chennai)