2018 (2) TMI 1237 - AT - Customs

Classification of imported goods - Under Pads - appellant claimed the classification under CTH 48184090 and the department sought to classify the said goods under CTH 48184010 - Held that - the product is essentially having the characteristics of the disposable under pads which are technically known as disposable bed pads/ bed sheets - Since, the goods in question were not made for fastening into the body, the same should not be termed as baby and clinical diapers and should more appropriately fall under Chapter Sub-Heading of 48184090 which provides for other sanitary articles - appeal allowed - decided in favor of appellant.

Summary

Issues:
Classification of imported goods as "Under Pads" under CTH 48184090 or CTH 48184010.

Analysis:
The dispute in this case revolves around the classification of imported goods declared as "Under Pads." The appellant contended for classification under CTH 48184090, while the department sought classification under CTH 48184010. The critical distinction lies in the tariff headings, with 48184010 covering "Baby and clinical diapers" attracting a 10% customs duty, and 48184090 encompassing "Others" exempt from CVD as per Notification No. 10/2010-CE. The appellant argued that the goods do not qualify as "baby and clinical diapers" as they are not fastened around the body but used on beds or chairs for waste absorption. The appellant supported their claim with product literature and samples of the imported goods.

The Revenue, on the other hand, maintained that the goods, possessing absorbent qualities, should be classified as "baby and clinical diapers" under Chapter 48184010. After hearing both parties and examining the evidence, the tribunal found that the imported goods, resembling disposable bed pads or sheets, did not meet the characteristics of traditional diapers. Diapers are typically fastened around a baby's body to absorb waste, a feature absent in the goods in question. Therefore, the tribunal concluded that the goods should be classified under Chapter Sub-Heading 48184090 as "other sanitary articles" rather than as baby and clinical diapers under 48184010.

Consequently, the tribunal found no merit in the impugned orders regarding the classification of the imported goods. They set aside the orders and ruled in favor of the appellant, allowing the appeals. The decision was made based on the technical assessment of the product's characteristics and its suitability for the designated tariff headings.

In summary, the judgment addressed the classification dispute concerning imported goods labeled as "Under Pads," emphasizing the distinction between "baby and clinical diapers" and other sanitary articles. The tribunal's decision hinged on the specific attributes of the goods in question, ultimately determining their appropriate classification under the relevant tariff headings.