Nickel Hydroxide with Additives Classifiable as Miscellaneous Chemical Product, Not Inorganic Chemical: CESTAT

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that Nickel Hydroxide with additives is classifiable as a miscellaneous chemical product under Customs Tariff Heading (CTH) 3824, and not as an inorganic chemical under CTH 2825. This decision came in a case involving HBL Power Systems Ltd., a manufacturer of nickel-cadmium batteries, which had been importing the product and classifying it under CTH 2825 to avail of a customs duty exemption. The customs department had disputed this classification, arguing that the product, being a mixture with additives, should fall under CTH 3824. The CESTAT, following its earlier decision in a similar case, upheld the department's view on the classification. However, the tribunal set aside the penalty and the invocation of the extended period of limitation, finding no evidence of mala fide intention on the part of the appellant.