2003 (6) TMI 363 - AT - Customs

Summary

Issues: Classification of imported goods under different headings, confiscation of goods, imposition of personal penalty on importer.

In this case, the appellant, a 100% Export Oriented Unit (EOU), imported polyester fabric and declared it under Heading 5407.61. Customs authorities disputed this classification, proposing Heading 5407.69 based on sample test results. The appellant argued that as an EOU, duty-free import entitlement applies, regardless of the sub-heading used for classification. The Commissioner, however, confiscated the goods and imposed a redemption fine and personal penalty. The Commissioner noted the duty variations for polyester fabric based on composition and accused the importer of suppressing information to seek lower duty assessment. The Commissioner held that the goods were correctly classifiable under Heading 5407.69 due to the importer's attempt to mislead. The Tribunal found that the appellant's goods were indeed polyester fabric, and the appellant's self-classification under Heading 5407.61 was not disputed by Customs. The Tribunal highlighted that the importer was not asked for additional technical details and emphasized that misclassification alone does not imply misstatement or suppression. Referring to a similar case precedent, the Tribunal set aside the confiscation and personal penalty, allowing the appeal and granting consequential relief to the appellant, thereby disposing of the stay petition.