2024 (4) TMI 1178 - AT - Customs

Classification of imported goods - Polyester Quilt Cover or bed sheets - Misdeclaration of goods - Under-valuation of goods based on stitching and conversion into bed sheets - HELD THAT - As per the opinion of the Textile Committee it is clearly stated that appropriate classification of the said goods is Polyester woven printed quilts and the imported goods have been presented by the appellants as Polyester woven Quilt Cover . If the same are detached then it will look like bed sheet which is not the correct view of the Revenue. In similar set of facts this Tribunal has examined the issue in the case of M/s. Annapurna Industries Others 2017 (8) TMI 1350 - CESTAT KOLKATA and held the goods in question are to be classified as Polyester woven printed quilts. Therefore the goods imported by the appellants are only Polyester Quilt Cover and accordingly the appellants have paid duty. The allegations of mis-classification and under-valuation are not sustainable in the eyes of law - there are no merits in the impugned orders and the same are set aside - appeal allowed.

Summary

Issues:
1. Misdeclaration of goods and value leading to evasion of Customs duty.
2. Classification of imported goods as 'Polyester Quilt Cover' or bed sheets.
3. Under-valuation of goods based on stitching and conversion into bed sheets.

Detailed Analysis:
The judgment by the Appellate Tribunal CESTAT KOLKATA involved a case where the appellant had imported 'Polyester Quilt Cover' but faced allegations of misdeclaration of goods and under-valuation to evade Customs duty. The goods were examined, and it was found that the quilt covers could be easily detached and converted into bed sheets, leading to the accusation of under-valuation. The Ld.Counsel for the appellants argued that the goods were correctly declared as 'Polyester Quilt Cover' and not bed sheets, as supported by a Textile Committee report. The Revenue contended that the detachable stitching made the goods bed sheets, justifying the under-valuation claim.

Upon considering the submissions, the Tribunal referred to a similar case involving M/s. Sidhant Impex and the Textile Committee's opinion, which classified the goods as 'Polyester woven printed quilts.' The Tribunal further cited a previous case, M/s. Annapurna Industries & Others, where similar facts were examined, resulting in the classification of the goods as 'Polyester woven printed quilts.' Consequently, the Tribunal held that the imported goods were indeed 'Polyester Quilt Cover' and not bed sheets, dismissing the misclassification and under-valuation allegations.

The Tribunal concluded that the accusations of misclassification and under-valuation were not legally sustainable. Therefore, the impugned orders were set aside, and the appeals were allowed with any consequential relief. The judgment clarified the correct classification of the goods as 'Polyester Quilt Cover,' emphasizing that the appellants had paid the appropriate duty for the imported goods.