2018 (3) TMI 514 - AT - Customs

Classification of imported goods - Bamboo Fiber - On the basis of the test report of the Textiles Committee, Chennai, it appeared to the Department that the goods imported are 61,759 kgs. of 100% Viscose (Rayon) Staple Fiber and merit classification under CTH 5504 1000 attracting Anti-dumping Duty of ₹ 5,52,935/- - whether classified as Bamboo Fiber under CTH 5504 9090 or are to be classified as 100% Viscose (Rayon) Staple Fiber under CTH 5504 1000? Held that - From the facts, it does not appear that the appellants have asked for any retest. This being so, when the goods are 100% Viscose (Rayon) Staple Fibre, they will have to be classified in the specific subheading in entry 5504-Artificial staple fibres, not carded, combed or otherwise processed for spinning namely 5504 10 00 of viscose rayon . Confiscation - redemption fine - penalty - Held that - he appellant have all through been contending that the goods made from bamboo fibre would fall within the residual entry of 5504 90 90. The suppliers have also invoiced the goods as bamboo fibre only - benefit of doubt will have to be given to the appellants that they have declared the goods under 5504 90 90 on the bona fide belief, albeit misconceived, that the goods would fall under that heading - confiscation, redemption fine and penalty set aside. Appeal allowed in part.

Summary

Issues: Classification of imported goods as Bamboo fiber, imposition of Anti-dumping duty, redemption fine, and penalty

Classification of Imported Goods:
The case involved the classification of imported goods declared as Bamboo fiber by the appellant. The goods were tested by the Customs House Laboratory and the Textiles Committee, with conflicting reports. While the Customs Laboratory described the sample as a fibrous mass of cellulosic origin, the Textiles Committee categorized the goods as 100% Viscose (Rayon) Staple Fibre. The Tribunal upheld the classification of the goods as Viscose (Rayon) Staple Fibre under CTH 5504 1000, attracting Anti-dumping Duty. The appellant's argument that the goods should be classified under CTH 5504 9090 due to being made from bamboo fiber was dismissed by the Tribunal.

Imposition of Anti-dumping Duty:
Based on the classification of the goods as 100% Viscose (Rayon) Staple Fibre, the Tribunal affirmed the imposition of Anti-dumping Duty amounting to &8377; 5,52,935/- as per Notification No.76/2010-Cus. The Tribunal found no grounds to interfere with this decision, considering the test reports and classification of the goods.

Redemption Fine and Penalty:
Regarding the redemption fine and penalty imposed on the appellant, the Tribunal considered the appellant's contention that the goods were declared under the belief that they fell under the residual entry of 5504 90 90 as bamboo fiber. The Tribunal acknowledged the appellant's genuine but mistaken belief and set aside the confiscation of goods, redemption fine, and penalty. Benefit of doubt was given to the appellant, leading to the partial allowance of the appeal in favor of the appellant.

This comprehensive analysis of the judgment highlights the issues of classification, imposition of Anti-dumping Duty, redemption fine, and penalty, providing a detailed overview of the Tribunal's decision on each aspect of the case.