MARGRA INDUSTRIES LIMITED Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) In this appeal at the instance of the importer challenge is against the order passed by the Commissioner dated 7 -7 -2003. The issue coming up for consideration is whether Marble Block imported by the appellant from Italy and Oman with one side polished can be considered as polished Marble Block or as rough Marble Block for the purpose of classification and Import Export Policy for the year 2002 -2007. If the goods are treated as rough Marble Block their import is restricted under a specific import licence. Admittedly, the appellants had no such licence. Second issue relates to the valuation of the goods.

(2.) Commissioner has held that Marble Blocks in question are to be treated as rough Marble Blocks classifiable under Heading 2515.12. Rejecting the declared value, he assessed that Marble Block at US 305 PMT invoking the provisions of Rule 6 of the Customs Valuation Rules. He further ordered confiscation of the goods under Section 111(d) and (m) of the Customs Act. A redemption fine of Rs. 11,35,000/ - in respect of the goods covered under show cause notice dated 5 -2 -2003 and Rs. 29,83,000/ - in respect of the Marble Block covered under show cause notice dated 15 -7 -2002, was imposed. Apart from the above, a penalty of Rs. 2,50,000/ - and Rs. 6,00,000/ - respectively was also imposed under Section 112(a) of the Customs Act.

(3.) It is contended on behalf of the importer -appellant that the Commissioner has erred both on the issue of classification as well as on valuation. According to the appellant, Marble Blocks at the quarry stage are covered under Chapter 25 of HSN. Referring to Note under Chapter 68, it was submitted that when various products coming under Chapter 25 are further processed than by mere shaping into blocks or slabs or sheets by splitting, roughly cutting or squaring the goods would come under Chapter 68. The impugned products, according to the appellant are worked upon after the quarry stage inasmuch as not only the process of even -surfacing has been done on one side of the imported Marble Block but also the process of polishing has been done. Therefore, classification proposed by the Revenue under Chapter 25 cannot be sustained. Learned Counsel for the assessee further pointed out that classification of the goods has to be decided not on the basis of end -use but on the basis of the goods imported as such. Overseas customs department of the country of shipment has also classified the goods as polished marble blocks under Heading 6802.