CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI PRINCIPAL BENCH – COURT NO. – IV [Arising out of Order-in-Appeal No. CC(A)/Customs/D- II/IMP/ICD/TKD/2080/2021-22 dated30.03.2022 passed by the Commissioner of Customs (Appeals), New Delhi]

M/s. Dharampal Satyapal Ltd. …Appellant Plot No. B-02, Block Echotech-1 Extension, Sector Echotech – 1, GreaterNoida – 201306 (U.P.)

VERSUS Commissioner of Customs – New Delhi …Respondent New Custom House, Near I.G.I. Airport, New Delhi - 110037 APPEARANCE:

Shri Jayant Kumar, Advocate for the Appellant Shri Rajesh Singh, Authorized Representative for the Respondent CORAM:

HON’BLE DR. RACHNA GUPTA, MEMBER (JUDICIAL)

HON’BLE MR. P.V. SUBBA RAO, MEMBER (TECHNICAL)

DATE OF HEARING: 03.03.2025 DATE OF DECISION: 02.07.2025 FINAL ORDER No. 50955/2025 DR. RACHNA GUPTA Present appeal is filed to assail Order-in-Appeal (O-I-A) No.

2080/2021-22 dated 30.03.2022. The facts in brief, which have culminated into the said order are as follows: -

1.1 M/s Dharampal Satyapal Ltd., the appellant herein, is having Importer Exporter Code (IEC). Appellant filed Bill of Entry (BOE) No. 9812504 dated 06.07.2015 for clearance of machines imported by the appellant. During the test check of Bill of entry (BOE), in audit, it was observed by the department that the appellant / importer imported the machines for their Areca Nut Plant declaring the Custom Tariff Heading CTH No. 84371000, for which the Counter Vailing Duty (CVD) is at the rate of 0%. However, the department opined that the said CTH is for the machines which are meant for cleaning, sorting or grading seed, grain or dried leguminous vegetables whereas the machines imported by the appellant were for being used in crumbling or processing Areca Nuts (commonly known as supari), for production of Pan Masala. As per department, the imported machines were actually classifiable under CTH 84798200 for which the effective rate of Counter Vailing Duty (CVD) is at the rate of 12.5%.

1.2 With these observations, the appellant was alleged to have short paid the CVD of Rs. 27,74,130/- and thus a Show Cause Notice No. 142/2015-16 dated 08.02.2016 was served upon the appellant proposing the recovery of said amount with interest and imposition of penalty. Another Show Cause Notice bearing same number as of the earlier one dated 07.09.2016 was served upon the appellant with the same allegations. The proposal of show cause notice dated 08.02.2016 was confirmed vide Order-in- Original bearing No. 99/2018/JC/KK/ICD/TKD dated 31.10.2018. The proposal of show cause notice dated 07.09.2016 was adjudicated vide Order-in-Original bearing No. 99/2018/JC/KK/ICD/TKD dated 01.11.2018. The appeal filed against this later order dated 01.11.2018 has been dismissed by Commissioner (Appeals) vide Order-in-Appeal bearing No. 2080/2021-22 dated 30.03.2022. Commissioner (Appeals) after considering both the show cause notices and a corrigendum dated 19.06.2018, the Order-in-Original dated 01.11.2018 has upheld the demand as was confirmed in the said O-I-O, however holding that the imported machines are classifiable under different CTH i.e.

84798200. Being aggrieved, the appellant is before this Tribunal.

2. We have heard Shri Jayant Kumar, learned Advocate for the appellant and Shri Rajesh Singh, learned Authorized Representative for the respondent.

3. Ld. Counsel for the appellant submitted that the adjudicating authorities belowcannot revise the classification proposed in SCN nor can Commissioner (Appeals) do so specifically in absence of any appeal filed by the department against the Order-in-Original (O-I- O). The adjudicating Authority cannot travel beyond the Show Cause notice and cannot confirm classification which was neither claimed by the appellant nor proposed by the department in the SCN.

3.1 Ld. counsel further submitted that the BOE had rightly classified three of the imported machines under CTH 84371000 as these are the machines meant to crush/ sort/ crumb etc. the seeds (Areca Nuts).