The Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad upheld the Commissioner’s decision on classification of color measurement equipment.
Facts
The classification sought by the respondents was changed by the assessing officer, resulting in a payment of duty of Rs. 10,13,647/-. The Respondents requested the assessing officer to pass a speaking order, but no speaking order was passed.
Therefore, the respondents challenged the assessment made on the bill of entry before the Commissioner (Appeals). The respondents produced a Chartered Engineer certificate. The Commissioner (Appeals) allowed the appeal of the respondents and accepted the classification sought by them, in respect of item No. 1, 2 & 3 of the table. However, in respect of item no 4 in the assessment order of the original Adjudication Authority was upheld.
Aggrieved by this order revenue has filed an appeal before the Tribunal challenge the reclassification done by the Commissioner (Appeals) of item No. 1 & 2 of the table. The respondents have filed cross objection, seeking to challenge the order of Commissioner (Appeals) in respect of Item No. 4 of the table.
Submissions
AR submitted that the Commissioner (Appeals) has allowed the classification under Heading No. 90273020 without ascertaining, if the said equipment uses optical radiation. From the order of Commissioner (Appeals), it is seen that the Commissioner (Appeals) has relied on the Chartered Engineer certificate.
Decision
The division bench of Raju Member (Technical) And Somesh Arora Member (Judicial) found that Chartered Engineer has clearly stated these goods measure the intensity of the color distribution at different wave lengthy for every measured point.
The bench observed that it is not in dispute that the data is obtained in digital form. As the equipment converts color data into digital data. The very function of converting color data to digital data in itself is a data processing function.
The Tribunal did not find any merit in the appeal filed by the revenue on the ground that no processing is done by the machine.
Case title: C.C.-Ahmedabad v/s Smaltochimia India Pvt Ltd
Citation: CUSTOMS Appeal No. 12797 of 2014-DB
