2006 (7) TMI 552 - AT - Customs

Summary

Issues involved: Classification of imported goods under CTH, misdeclaration of goods, duty demands, confiscation liability, penalty liability.

Classification of Goods:
The imported goods consisted of Textured Filament Yarn in the Warp, confirmed by the laboratory. The classification under CTH 54076900 was upheld based on the construction of the fabrics, in line with the decision in the case of Shree Ganesh International, 2004 (174) E.L.T. (171) (Tri.-Delhi).

Misdeclaration Allegation:
The consignment was initially alleged to be misdeclared as 100% non-Textured polyester fabrics under CTH 5407.61. However, subsequent tests by the Textile Committee revealed the presence of Textured Filament Yarn in the Warp and non-textured Polyester filament in Weft. This led to a case of misdeclaration, with the correct classification determined to be under CTH 54076900.

Duty Demands and Confiscation:
Consequent duty demands, confiscation liability under Section 111(m) of the Customs Act 1962, and penalty liability under Section 112(a) on the appellant (Imports) & 112(b) on CHA were imposed. However, based on the findings and the bona fide belief of the importers, no penalty or confiscation was deemed necessary, following the precedent set in the case of Shree Ganesh International.

Final Decision:
The Appellate Tribunal set aside the confiscation, redemption fine, and penalties as ordered, partially allowing the appeal. The duty determined and clearance under DFRC, as ordered by the Ld. Commissioner, were not contested, and no further orders were passed in that regard. The judgment was pronounced in court on 4-7-2006.