2003 (7) TMI 420 - AT - Customs

Summary

Issues:
Classification of imported self adhesive labels as consumer goods under ITC (HS) heading 48211001.90 without a license requirement.

Analysis:
The appellants imported self adhesive labels classified as consumer goods under ITC (HS) heading 48211001.90, requiring a license for importation. The Commissioner (Appeals) upheld this classification, stating that the Import and Export Policy identifies the goods as consumer goods, and the Customs Department cannot question this classification. The appellants argued that the labels, being in bulk and rolls needing further processing, were not consumer goods. However, the SDR highlighted the restrictive classification of the goods as consumer goods, not permitted for import without a license. The appellants voluntarily paid redemption fines, leading to clearance without penalties. The Tribunal noted that the appellants did not contest the classification or the redemption fines, and upheld the Commissioner's decision that the goods fell under the Import and Export Policy's definition of consumer goods, mandating a license for importation.

The Tribunal emphasized that since the appellants did not challenge the classification or the redemption fines, and voluntarily paid the fines, there was no basis for contesting the order. The Commissioner's decision was based on the goods being classified as consumer goods under the Import and Export Policy, which the Customs Department is bound to implement without questioning the classification. The Tribunal rejected the appeals, stating that the goods were correctly classified as consumer goods under the policy, and upheld the requirement for a license for importation. The appellants' argument that the goods were not consumer goods due to bulk packaging and further processing requirements was not accepted, as the statutory provisions mandated adherence to the classification under the Import and Export Policy.

In conclusion, the Tribunal affirmed the classification of the imported self adhesive labels as consumer goods under ITC (HS) heading 48211001.90, requiring a license for importation as per the Import and Export Policy. The appellants' failure to contest the classification or redemption fines, along with the statutory obligation to implement the policy's classification, led to the rejection of the appeals. The decision highlighted the Customs Department's role in enforcing the statutory provisions without questioning the policy's classification of goods, emphasizing the necessity of compliance with import regulations.