CESTAT Chennai Rejects Reclassification Of Nikrothal Wire To Stainless Steel Wire CTH

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 July held that the Customs Department cannot reclassify imported Nikrothal wire from Customs Tariff Heading (CTH) 75052200 (Nickel Alloy Wire) to CTH 72230091 (Stainless Steel Wire) when the issue has already been decided in the importer's own case and there is no change in facts or law.

Judicial Member P. Dinesha and Technical Member M. Ajit Kumar allowed an appeal filed by Alleima India Private Limited against an order of the Commissioner (Appeals), which had upheld the Department's reclassification of the goods based on laboratory test results showing high nickel and chromium content. The Bench held:

“The importer's classification has already been accepted in its own case and no distinguishing facts or change in law have been shown to justify a departure from that view.”

Before the Tribunal, the importer submitted that the same product had already been held classifiable under CTH 75052200 by the Ahmedabad Bench of the CESTAT in its own case, and that there was no change in the goods or tariff entries to warrant a different view.

The Bench noted that the earlier CESTAT ruling squarely covered the dispute and observed that the Revenue had failed to point out any distinguishing facts, fresh evidence, or amendment in law to justify deviating from the earlier decision.

Accordingly, the CESTAT set aside the orders of the lower authorities and allowed the appeal with consequential relief, holding that the reclassification was unsustainable.

Appearance for the Appellant: Shri T. Viswanathan, Advocate

Appearance for the Respondent: Shri Anoop Singh, Authorized Representative