2005 (8) TMI 457 - AT - Customs

Summary

Issues: Classification of imported goods under Customs Tariff Heading, Confiscation of goods, Imposition of penalty

The case involved the classification of imported 100% polyester knitted table cloth under Customs Tariff Heading (CTH) 6302.40, which required a specific license for import. The Adjudicating Authority confiscated the goods under Section 111(d) of the Customs Act, 1962, due to the absence of a valid import license. However, no penalty was imposed on the importer as the import was believed to be made in good faith. The Commissioner (Appeals) accepted the importer's claim for classification under CTH 6304.91, which did not require a specific license for import. The Commissioner held that the special import license submitted was valid for covering the goods, setting aside the order of adjudication, leading to the Revenue's appeal.

The Customs Tariff Heading 6302.40 covers "table linen, knitted or crocheted," including items like table cloths and tea napkins. The Commissioner (Appeals) determined that the goods in question were indeed table cloths, despite being knitted or crocheted. The Tribunal disagreed with the reasoning that the material could only be used as a furnishing article and not as a cloth during meals. They found that knitted and crocheted table cloths could still function as table cloths during meals, thus falling under CTH 6302.40. Consequently, the Tribunal set aside the classification under CTH 6304.91 and upheld the Revenue's contention that the goods should be classified under CTH 6302.40. The Tribunal did not address the issue of imposing a penalty on the importers as it was not raised in the appeal before them.

In conclusion, the Tribunal allowed the appeal by the Revenue, ruling that the imported goods were correctly classified under CTH 6302.40 as table cloths, requiring a specific license for import. The decision highlighted the importance of accurate classification under the Customs Tariff Heading and the consequences of failing to comply with licensing requirements for restricted goods.