Custom
TRT-2025-
Cestat Kolkata
Date:-17-08-22
In:-
Issue Favourable to Tax Payer ?:-
Date – 17 August 2022
Facts
- The appellant, M/s. BTL EPC Limited, imported 31 consignments of Power Tillers from July 10, 2012 to August 29, 2013. BTL claimed benefit of concessional rate of basic customs duty under the Notification No. 12/2012-Customs dated March 17, 2012, under Sl. No. 399(x) of the Table to the said notification.
- The Assistant Commissioner of Customs denied the benefit and the said goods were assessed at the basic customs duty rate of 7.5%.
- Aggrieved by the same, filed an appeal, however, it was rejected.
- Another party, Chirag Corporation imported two consignments of power tillers and filed two Bills of Entry both dated 03.06.2014, claiming benefit under the said notification.
- However, it was found that the goods are not rotary tillers and therefore the goods were held to be liable for confiscation under Section 111(m) of the Customs Act, 1962 and that Chirag was liable to penalties under Sections 112(a) and 114A of the Act.
- Aggrieved, filed the appeal.
Issue
- Whether the power tillers are different from rotary tillers and whether the appellant is entitled to benefit of customs duty?
Order
- The authorities observed that power tillers come under HS Code 8432 8020 as per Notification No. 19/2015-2020 dated July 15, 2020 issued by the Directorate General of Foreign Trade, Ministry of Commerce & Industry.
- The authorities referred to the case of VST Tillers & Tractors Ltd. Vs. Commissioner of Central Excise where it was held that Power Tillers are classifiable under CTH 84.32 of the Central Excise Tariff. Further, they also referred to the case of O.K. Play (India) Ltd. Vs. CCE, 2005 wherein it was held that Power Tillers are classifiable under 84.32.
- The authorities held that the contention that power tillers are different from rotary tillers is based on erroneous premises and thus unsustainable.
- The authorities further held that Power Tillers are entitled to the benefit of a concessional rate of basic customs duty of 2.5% in terms of the said notification, as per Sl. No. 399(x).
- The appeal made by BTL is allowed, the impugned order is set aside, and the appeal made by Revenue is rejected.
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