2024 (3) TMI 1388 - AT - Customs

Classification of imported goods - 100% Polyester bed cover / Quilt Cover - to be classified under CTH 6304 of the Customs Tariff Act or under CTH 5407? - deliberate mis-declaration of the goods - levy of mandatory penalty under Section 114A of the Customs Act, 1962 - HELD THAT - In this case, the claim of the respondent is that they have correctly classified the impugned goods as 100% Polyester bed cover / Quilt Cover having merit classification under CTH 6304 of the Customs Tariff Act. The same issue came up before this Tribunal in the case of COMMISSIONER OF CUSTOMS (PORT) , KOLKATA VERSUS M/S. SILPHA FINVEST P. LIMITED 2024 (3) TMI 246 - CESTAT KOLKATA , wherein this Tribunal has examined the issue and observed that ' the impugned goods have been correctly classified by the respondent and the same are not liable for confiscation. We further hold that the respondent is liable to pay duty by classifying the impugned goods under CTH 6304 of the Customs Tariff Act and no penalty is imposable on the respondent. No redemption fine is payable by the respondent.' As the respondent imported Bed sheets which are having merit classification under CTH 6304 of the Customs Tariff Act, in these circumstances, the charge of suppression of facts is not sustainable against the respondent. There are no merit in the appeal filed by the Revenue - Accordingly, the same is dismissed.

Summary

Issues: Classification of imported goods under Customs Tariff Act

Analysis:
The case involved an appeal by the Revenue against an order regarding the classification of imported goods. The respondent had imported consignments declared as "100% Polyester bed cover / Quilt Cover" under CTH 6304, while the Revenue contended that the goods should be classified under CTH 5407 as "Polyester Woven Fabrics." Representative samples were taken, and a Show Cause Notice was issued, alleging mis-declaration. The goods were held to be mis-declared, confiscated, and a fine, duty demand, interest, and penalty were imposed on the respondent under the Customs Act, 1962.

The Revenue claimed that the mandatory penalty under Section 114A of the Customs Act should have been imposed due to deliberate mis-declaration. The respondent argued that the goods were correctly classified as "100% Polyester bed cover / Quilt Cover" under CTH 6304. The Tribunal referred to a previous case and held that the goods were properly classified as "Bed spreads" under CTH 6304, not as woven fabrics under CTH 5407. Therefore, the respondent was not liable for confiscation, penalty, or redemption fine.

The Tribunal found that the charge of suppression of facts against the respondent was not sustainable since the imported goods were correctly classified under CTH 6304. Consequently, the appeal filed by the Revenue was dismissed, affirming the classification of the goods as "Bed spreads" under CTH 6304.