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Issues:
Classification of imported sports shoes under Customs Tariff - Mis-declaration of retail price - Recovery of duty under different sub-heading - Confiscation of goods - Penalty imposition - Interest claim. Classification under Sub-heading 6401.12: The issue in this case revolved around the classification of Gold Star brand sports shoes imported by the appellant under the Customs Tariff. The appellants claimed that the shoes were eligible for assessment at a Nil rate of additional Customs duty under sub-heading 6401.12, as the retail sale price did not exceed Rs. 125 per pair. However, subsequent proceedings alleged mis-declaration of retail price and the shoes were sought to be reclassified under sub-heading 6401.19 as "other" footwear. The impugned order upheld the reclassification and mis-declaration charges, leading to duty demands, confiscation of goods, penalties, and interest claims. Mis-declaration Allegation: The appellants contested the mis-declaration charge, arguing that the sale price to retailers was below Rs. 125 per pair, and any higher retail prices were not by them or the retailers who purchased the imported shoes. They emphasized that the mere existence of higher-priced shoes of the same brand did not invalidate their declaration. The appellants highlighted that the absence of a retail price declaration on the goods did not disqualify them from classification under sub-heading 6401.12, as Section 4A of the Central Excise Act pertained to goods manufactured in India, not imported goods. Legal Basis for Duty Recovery: The Customs authorities contended that the short-levy of duty was clear and recoverable under Section 28 of the Customs Act. They argued that imported footwear was subject to additional Customs duty at the rate applicable to Indian-manufactured footwear under Chapter 64 of the Central Excise Tariff. The absence of a price declaration on the imported shoes rendered them ineligible for classification under sub-heading 6401.12, as per Section 4A of the Central Excise Act. Therefore, the recovery of short-levied duty was independent of the appellant's declaration regarding retail sale price. Judgment and Legal Analysis: The Tribunal found that the imported shoes lacked a price declaration, making them ineligible for classification under sub-heading 6401.12. The initial assessment at a Nil rate of duty was incorrect, leading to duty short-levy recoverable under the Customs Act. While the duty demands were confirmed, the confiscation of goods, penalty imposition, and interest claim were deemed legally unsustainable due to the absence of mis-declaration regarding price declaration on the packages. The dispute was characterized as purely legal, with the correct classification of the goods being under sub-heading 6401.19 as "other" footwear. The Tribunal upheld the duty demands but set aside orders related to confiscation, penalty, and interest, disposing of the appeals accordingly.
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