2017 (8) TMI 1350 - AT - Customs

Valuation - imported Polyester Quilt Cover - The department is of the view that fabric used for the quilt cover is nothing but a double bed sheet. So, enhanced duty was demanded - Held that - Textile Committee has submitted a report on 25.08.2014 wherein it is mentioned that the item in question is 100% polyester woven printed quilt Cover under H.S. 6302.22 - appeal allowed - decided in favor of appellant.

Summary

Issues:
Identification of imported goods - Classification dispute - Custom duty assessment - Expert report credibility - Appeal against Orders-in-Originals/Orders-in-Appeals - Cross appeal - Duty payment on Polyester Quilt Cover - Fabric classification - Loss to exchequer - Textile Committee report - Relief granted to appellants - Departmental appeal dismissal.

Classification Dispute:
The appeals were filed against Orders-in-Originals/Orders-in-Appeals regarding the import of Polyester Quilt Covers and the duty payment made by the appellants. The department contended that the fabric used for the quilt cover was equivalent to a double bed sheet, leading to a demand for enhanced duty. However, the appellant's plea was accepted in the departmental appeal. The main submission was that the custom duty on the quilt cover should be the same as that on the bed sheet, asserting no loss to the exchequer. The Textile Committee's report confirmed the item as a 100% polyester woven printed quilt cover under H.S. 6302.22, supporting the appellants' claim. Consequently, the Tribunal held that the impugned order by the Commissioner was unsustainable and set it aside in favor of the appellants, granting them relief.

Expert Report Credibility:
Upon considering the submissions from both parties and examining the records, the Tribunal highlighted the crucial role of the expert report submitted by the Textile Committee, which positively influenced the decision in favor of the appellants. The report's detailed classification of the imported item as a polyester quilt cover under a specific Harmonized System code played a pivotal role in determining the classification dispute and upholding the appellants' contentions. The Tribunal emphasized the importance of expert opinions in resolving classification issues and ensuring accurate duty assessment, ultimately leading to the dismissal of the departmental appeal.

Cross Appeal and Relief Granted:
The consolidated order addressed multiple appeals with identical issues, streamlining the process for efficiency. The period under dispute ranged from June 2014 to February 2015, encompassing the various import transactions of Polyester Quilt Covers. By analyzing the expert report, the Tribunal concluded that the appellants were entitled to relief due to the accurate classification of the imported goods, aligning with the expert assessment. Consequently, the appeals filed by the appellants were allowed, while the departmental appeal was dismissed, affirming the decision in favor of the appellants and maintaining consistency in duty assessment for similar goods.