2018 (11) TMI 464 - AT - Customs

Scope of SCN - Classification of imported goods - Blankets - Revenue is of the view that the said blankets are classifiable under CTH 60019200, whereas respondent classified the same under CTH 63014000 - Held that - While classifying the same under chapter Heading 63014000, the Ld. Commissioner has relied on Section Note 7(g) of Section Xi of Customs Tariff Act, whereas, the said observations have not been challenged by the Revenue in appeal and the Revenue is relying heavily on Section Note 7(a) and (b) or Section Xi - Without challenging the observations of the ld. Commissioner, the appeal filed by the Revenue is not sustainable - appeal dismissed - decided against Revenue.

Summary

Issues: Classification of imported goods under different chapter headings

Analysis:
The case involved a dispute over the classification of imported goods, specifically blankets, under different chapter headings. The respondent had declared the goods as blankets under Chapter Heading 63014000, while the Revenue contended that they should be classified under Chapter Heading 60019200. The Revenue issued a show cause notice based on the belief that the goods did not meet the definition of "Made Up" as per Section note 7(a) and (b). The impugned order dropped the charges against the respondent, leading to the Revenue's appeal.

The main ground for the Revenue's appeal was that the goods did not qualify as "Made Up" and the process of hemming, as required under Chapter 60, had not been carried out. On the other hand, the respondent argued that the end use of the imported goods was as blankets, and the goods were cut pieces of standard shape with pre-printed patterns, making them classifiable under Chapter Heading 60019200. The ld. Commissioner had relied on Section Note 7(g) of Section Xi to determine the classification, emphasizing that the goods in question were blankets.

The appellate tribunal analyzed the relevant Section Notes and Chapter Notes of both Chapter 60 and Chapter 63 of the Customs Tariff Act, 1975, to determine the proper classification. It was noted that the imported goods were in the shape of standard sizes, printed with designs, and required only hemming to be considered finished blankets. The tribunal agreed with the ld. Commissioner's observations and upheld the classification under Tariff Item 63014000, as the goods met the criteria for blankets as per the HSN explanatory notes.

The tribunal emphasized that the Revenue had not challenged the ld. Commissioner's observations regarding the classification under Chapter Heading 63014000. The goods' specific design and patterns, along with the process of hemming, supported their classification as finished blankets under Chapter 63. Therefore, the appeal filed by the Revenue was deemed unsustainable, and the impugned order was upheld, resulting in the dismissal of the Revenue's appeal.

In conclusion, the tribunal's detailed analysis of the relevant Section Notes, Chapter Notes, and explanatory notes supported the classification of the imported goods as blankets under Chapter Heading 63014000. The decision highlighted the importance of considering the end use and characteristics of the goods in question for proper classification under the Customs Tariff Act.