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Issues: Classification of imported pins under ITC (HS) sub-heading, Confiscation and redemption fine imposition
Classification of pins under ITC (HS) sub-heading: The appeals involved a dispute regarding the classification of imported pins under the ITC (HS) sub-heading. The Commissioner (Appeals) had classified the pins as 'other pins of a kind not classifiable as consumer goods' under sub-heading No. 73193009.90, while the Revenue contended that the pins should be considered as 'consumer goods' and fall under a different sub-heading. The original authority had ordered confiscation of the pins with an option for redemption, which was later vacated by the appellate authority. Upon examination, it was found that during the relevant EXIM policy period, certain types of pins were restricted for import and required a specific license, while others were freely importable. The pins in question were imported without a specific license and claimed clearance under OGL. The original authority classified the pins under a restricted sub-heading, leading to the confiscation order, which was overturned by the Commissioner (Appeals) who classified them under the freely importable sub-heading. The Tribunal agreed with the Commissioner's classification, stating that the pins, used exclusively by textile manufacturers for packing garments and not by common consumers, fell under sub-heading No. 73193009.90 as 'other pins of a kind not classifiable as consumer goods.' Therefore, the Tribunal rejected the Revenue's appeal, upholding the Commissioner's order. Confiscation and redemption fine imposition: The Revenue argued that the pins should be treated as 'consumer goods' due to their availability in the market and use by textile manufacturers for packing garments, warranting confiscation with an option for redemption. On the other hand, the respondents contended that the pins were used only by industrial consumers and not the general public, thus not fitting the definition of 'consumer goods.' The Tribunal considered the nature of the pins, being metal with plastic-coated heads, and their exclusive use by textile manufacturers for packing garments at the time of importation in 1996. It emphasized that consumer goods are those available for consumption by the general public, indicating that goods solely consumed by industries like the textile industry may not qualify as 'consumer goods.' As the pins were not shown to be used by common people and were freely importable, the Tribunal upheld the classification under sub-heading No. 73193009.90, ruling out confiscation or a redemption fine. Consequently, the Tribunal rejected the Revenue's appeal, affirming the Commissioner's decision.
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