The classification of goods for customs duty requires adequate evidence, and previous test results are binding unless challenged appropriately.

PER R. MURALIDHAR

The appellant KEC International Ltd. have imported Optical Ground Wire (OPGW) Fiber Optic Cable during period 16/6/2016 to 11/6/2021 classifying the same under Customs Tariff Heading 8544 70 90. After taking up certain investigations, a Show Cause Notice came to be issued on 11/06/2021 alleging that the product would get classified under CTH 9001 00 00. Accordingly, the differential duty of Rs. 2,38,07,593/- was demanded along with interest and penalty. A Show Cause Notice was also issued to the DGM Taxation and the Senior Manger Taxation seeking to know as to why penalty should not imposed on them. The appellants filed their detailed reply stating that they have been classifying the goods under CTH 8544 70 90 right from 2012 onwards. Their earlier consignment was duly tested by Electronics Regional Test Laboratory (EAST) and Test Report was issued by them on 10/01/2014. Based on this Test Report, the Department accepted the classification as CTH 85447090 vide their letter dated 18/06/2015. In the case of the subsequent imports during the period 16/06/2016 to 11/06/2021 also the same goods were imported and hence they had correctly classified the goods under CTH 8544 70 90. They also contested the issue on limitation. After due process, the Adjudicating Authority vide the impugned order, has dropped the demand to the extent of Rs.2,23,22,087/- in respect of the imports done during the period 16/6/2016 to 10/06/2019 on the ground that there was no suppression on the part of the appellant. On account of limitation, this portion of the demand was dropped. However, he has confirmed the demand in respect of the two Bills of Entry, for the imports done during the period 11/06/2019 to 11/06/2021 confirming the demand of Rs. 14,85,505/-. He dropped the proposed penalty against the DGM Taxation and Senior Manager Taxation. Being aggrieved by the confirmed demand of Rs. 14,85,505/- M/s. KEC International Ltd. has filed the present appeal before the Tribunal. Being aggrieved with the dropping of demand of Rs. 2,23,22,087/- along with interest and penalty, the Revenue is before the Tribunal. Though in the Appeal Form CA-5, the revenue has mentioned the DGM Taxation and Sr. Manager Taxation as Respondents and canvassing has been made to impose penalties on them, in the absence of filing of specific Appeal against these persons, which are to be properly accounted for as Appeals, we hold that the points pertaining to these individuals cannot be taken up as part of the Appeal filed against KEC. Therefore, we are not considering the Revenue’s case in respect of these two persons.

2. We have taken up both the appeals for hearing together.

3. Coming to the appeal filed by the Revenue against the dropping of the demand to the extent of Rs. 2,23,22,087/-, the Learned AR submits that the detailed verification and investigation taken up by the DRI proves that the ‘OPGW Fiber Optic Cable’ is required to be classified under CTH 9001 00 00. The LB has already held on 22/11/2017 that the PWG Fibre Optic Cable is classifiable under CTH 9001 00 00. The appellant has knowingly mis-declared the CTH as 8544 70 90 even for the subsequent imports carried out till 11/06/2021. Therefore, the Adjudicating Authority is in error in giving the reprieve on the ground of limitation to the appellant. He reiterates the detail grounds taken by the Revenue in their appeal and prays that the impugned order may be set aside to this extent and the appeal filed by the Revenue may be allowed.

4. The L