Pump For Lotion Dispenser Is Not Scent Spray Or Toilet Spray, Classifiable Under CTH 84248990: CESTAT
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Pump for Lotion Dispenser is held to be covered under CTH 84248990, being the pumps meant not only for displacing the liquid or lotion but for simultaneously dispersing the same.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has held that Section Note 8424...
The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Pump for Lotion Dispenser is held to be covered under CTH 84248990, being the pumps meant not only for displacing the liquid or lotion but for simultaneously dispersing the same.
The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has held that Section Note 8424 talks about mechanical appliances meant for projecting, dispersing, or spraying liquids or powders, including pumps, spray guns, and all other appliances for the purposes specified in the respective entries of this chapter. Pumps merely for liquid displacement are under CTH 8413. But the pumps for the dispersion of fluids are covered under CTH 8424. Admittedly, the imported goods are pumps, but for the dispersion of fluids. As per GRI Rules, as quoted above, a more specific entry has to be followed. The bench held that imported goods deserve classification under CTH 8424, more specifically under CTH 84248990.
The appellant, as an importer, filed a Bill of Entry for clearance of goods declared as pumps for lotion dispensers after classifying the goods under CTH 84248990 with Basic Customs Duty (BCD) leviable at a rate of 7.5%. The shipment was marked for clearance under RMS by the system. However, during the scrutiny of the Bill of Entry by the Shed Officer, the declared CTH 84248990 was not found appropriate for the description of the goods given in the Bill of Entry, with the opinion that the goods appeared more appropriately classifiable under CTH 9616.
The shed officer redirected the bill of entry to Appraising Group V for necessary action, along with the representative sealed sample of the impugned goods. The Appraising Group-V/Deputy Commissioner of Customs held that the pumps for lotion dispensers imported are correctly classifiable under CTH 84132000, which provides, in pertinent part, for pumps for lotion dispensers: pumps other than those of subheadings 8413.11 and 8413.19, and are liable to be assessed accordingly.
The assessee preferred an appeal before the Commissioner (Appeals). The committee of commissioners, in exercise of powers under Section 129A(2) of the Customs Act, 1962 (hereinafter called the Act), passed and reviewed Order No. 32/2002 dated October 27, 2022, directing the Deputy Commissioner of Customs (Review), ACC (Import), to file an appeal praying for setting aside Order dated July 25, 2022. But neither any appeal was filed by the department nor did the department mark its presence before the Commissioner (Appeals) in the appeal filed by the assessee, who proceeded to decide the appeal before him as per records and submissions made by the appellant-assessee. The order was set aside, but with the direction that Bill of Entry No. 7818002 dated June 3, 2020, should be reassessed by classifying the same under CTH 84249090.
The department contended that the importer has classified the goods under CTH 84248990 and the Commissioner (Appeals) has classified the same under CTH 84249090, which is not correct since items are intended for use in smaller containers with smaller necks for spraying small quantities of material like fragrance, liquid soaps, or pharmaceutical medicines, and the said chapter heading does not include scent sprays, similar toilet sprays, and their mount and head. Such items are specifically covered under CTH 9616. The Tribunal is competent to classify the goods under a different heading not covered by the show cause notice.
The department contended that goods have been correctly declared under CTH 84248990, which include mechanical appliances (whether or not hand operated) for projecting, dispersing, or spraying liquids or powders. CTH 8413, on the other hand, covers pumps that are intended for industrial applications and that are capable of continuously displacing volumes of liquid, whereas the product in question is a pump for dispensing small amounts of lotion (a cosmetic).
The issue raised was whether the goods in question are pumps for liquids, which can be classified under CTH 8413, or mechanical appliances for projecting, dispersing, or spraying liquids or powders, which are classifiable under CTH 8424.
The tribunal held that the goods in question are held to be covered under CTH 84248990, being the pumps meant not only for displacing the liquid or lotion but for simultaneously dispersing the same. Hence, we hold that the classification made by the respondent-assessee in the Bill of Entry No. 7818002 dated June 3, 2020 is the correct classification, i.e., the pumps imported by the appellant are classifiable under CTH 84248990. Hence, the order-in-appeal is set aside, which classified the impugned pump under CTH 84249090. However, the appeal filed by the department still stands dismissed.
Counsel For Appellant: Nagendra yadav
Counsel For Respondent: Rachit
Case Title: Principal Commissioner of Customs, New Delhi Versus M/s. Aptar Pharma India Pvt. Ltd.
Case No.: Customs Appeal No. 53942 of 2023 [DB]