2004 (2) TMI 526 - AT - Customs

Summary

Issues:
Classification of imported consignment under Heading 5407.61 or 5407.51/52, reliance on test reports by different bodies, rejection of appellant's contentions, differential duty payment, confiscation of goods, imposition of penalties.

Analysis:
1. The case involved the classification of a consignment of Polyester Fabrics under Heading 5407.61 or 5407.51/52 based on the type of yarn used. The appellant claimed non-texturised filament yarn, supported by test reports from the Custom House Laboratory and SASMIRA.

2. The Adjudicating Authority rejected the appellant's contentions, relying on the Textile Commissioner's report classifying the goods under Heading 5407.52. This decision resulted in a confirmation of differential duty, confiscation of goods, and imposition of penalties on the appellant.

3. The appellant argued that the Textile Commissioner's opinion should not outweigh the Custom House Laboratory and SASMIRA reports, emphasizing the lack of justification for disregarding favorable test reports and past import classifications.

4. The Tribunal noted the conflicting test reports and the absence of reasons for ignoring the SASMIRA report supporting the Chemical Examiner's findings. It highlighted the importance of considering the credibility of certifying institutions like SASMIRA in such disputes.

5. The Tribunal found that with two favorable test reports and past import history supporting the appellant's claim, the Adjudicating Authority's decision was unsustainable. As a result, the impugned order was set aside, and both appeals were allowed in favor of the appellant.