2004 (7) TMI 441 - AT - Customs

Summary

Issues: Classification and Valuation of Various Items

Fur Cloth Classification and Valuation:
The Tribunal upheld the classification of fur cloth under Chapter Heading 6001.92 of the Customs Tariff, rejecting the claim for classification as parts of toys under sub-heading 9503.70. The valuation dispute was also addressed, with the Tribunal setting aside the enhancement of value due to lack of comparable goods and no evidence of undervaluation. The classification under 6001.92 was upheld, and the enhancement of valuation was set aside.

Plastic Eyes, Nose, Heart, etc., and Plastic Washer:
The classification of plastic eyes, nose, heart, etc., under Heading 9503.70 as parts of toys was accepted by the Department, and the party did not dispute it. The plastic washer, manufactured as parts of toys and supplied with other parts, was also classified under 9503.70 as parts of toys, fitting appropriately into this category.

Rubber Parts and Skull Mask Classification:
The classification of rubber parts like half face masks and hair masks as parts of toys was accepted, contrary to the Department's view that they required a license, which was deemed incorrect. Similarly, the skull mask, classified as parts of toys, was held not to require a license, aligning with the classification under 9503.70.

Dynasaurs Classification:
The item Dynasaurs was confirmed to be a consumer item requiring a license, a finding that was not disputed by the party.

Redemption Fine and Penalty:
The redemption fine of Rs. 1 lakh was deemed incorrect as it was leviable only on the item "Dynasaurs." The matter was remitted back to the Original authority for re-determination. Penalties imposed on Directors were set aside as there was no under-valuation, mis-declaration, or evidence of duty evasion, justifying the decision to overturn the penalties.

In conclusion, the appeals were disposed of based on the above findings, addressing the classification and valuation issues of various items while considering the redemption fine and penalties imposed.