2013 (7) TMI 757 - CGOVT - Customs

Classification of goods - Duty Drawback assessee exported baby caps and claimed drawback under Sl. No. 6505A and the same was sanctioned as per the declaration - the claimant sought for amendment of the drawback Sl. No. to 611107A on the ground that the same was earlier wrongly declared by mistake Held that - Drawback Sr. No. 6505 provides the most specific description and goods baby caps are rightly classified under Sr. No. 6505 - General Rules for Interpretation of the First Schedule to the Customs Tariff Act - mutatis mutandis apply for classifying the export goods listed in drawback schedule as per Condition No. 8 of the Notification No. 81/2006 - Rule 3(a) states that the heading which provides most specific description, is to be preferred to heading providing a more general description revision decided against the assessee

Issues: Classification of export goods for drawback under Customs Act, 1962.

Issue 1: Classification of baby caps under Drawback Schedule.
The case involves the classification of knitted baby caps for the purpose of claiming drawback under the Customs Act, 1962. The applicant initially claimed drawback under Sl. No. 6505A, which covers headgears. Subsequently, the applicant sought an amendment to claim drawback under Sl. No. 611107A, arguing that baby caps should be classified as clothing accessories under Heading 61.17, not as headgear. The lower authorities upheld the classification under Sl. No. 6505A, leading to the applicant filing a revision application before the Central Government.

Analysis: The applicant contended that baby caps should be classified as clothing accessories under Heading 61.17, not as headgear under Sl. No. 6505A. The Government observed that the HSN Explanatory notes exclude knitted or crocheted headgears from the purview of Heading 6111. Additionally, Note I(O) to Section XI excludes hair nets or other headgears from its scope. The General Rules for Interpretation dictate that the most specific description prevails, and in this case, Sl. No. 6505 provides the most specific description for baby caps, justifying their classification under that entry. The Government found no error in the lower authorities' decision and upheld the classification under Sl. No. 6505A, rejecting the revision application.

Issue 2: Interpretation of Customs Tariff Act and Rules for classification.
The case involves the application of the Customs Tariff Act, 1975, and the General Rules for Interpretation for classifying export goods listed in the drawback schedule. The applicant sought to reclassify the export products, arguing for a different drawback entry based on the interpretation of relevant tariff items and rules.

Analysis: The Government referenced the relevant tariff items, specifically Sr. No. 6111 for babies' garments and clothing accessories and Sr. No. 6505 for headgear. The Government highlighted that the export of knitted baby caps fell under Sr. No. 6505A, which covers headgears and parts thereof. By applying the General Rules for Interpretation, the Government emphasized that the most specific description, as provided by Sl. No. 6505, should prevail over a more general description. Consequently, the Government upheld the classification under Sl. No. 6505A, emphasizing the application of the Customs Tariff Act and related rules for classification.

In conclusion, the judgment delves into the classification of export goods for drawback purposes under the Customs Act, 1962. It scrutinizes the specific classification of knitted baby caps under the relevant drawback schedule entries, emphasizing the application of the Customs Tariff Act and General Rules for Interpretation. The decision upholds the classification of baby caps under Sl. No. 6505A, rejecting the applicant's request for reclassification based on the interpretation of relevant tariff items and rules.

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