2024 (9) TMI 1364 - AT - Customs

Classification of imported one consignment of Bed sheet, declared as made of 100% Polyester - classifiable under CTH 5407 or under CTH 6304? - HELD THAT - The Tribunal in the case of M/S. C.F. INC., A UNIT OF SURINDER KUMAR SONS (HUF) VERSUS COMMISSIONER OF CUSTOMS (PORT) , KOLKATA 2024 (4) TMI 1178 - CESTAT KOLKATA has held that ' the goods imported by the appellants are only Polyster Quilt Cover . Going by the factual details, particularly keeping in view the common parlance usage of the material as bed sheets which can be deduced from their size and the decided case laws, the goods are classifiable under CTA 6304 as contended by the appellant and not under CTA 54.07 as has been held by the Revenue. The order of the lower authority is upheld and the appeal filed by the Revenue dismissed.

Summary

Issues:
Classification of imported goods under Customs Tariff Act - CTH 5407 or CTH 6304.

Detailed Analysis:
The case involves a dispute over the classification of an imported consignment of bed sheets made of 100% polyester. The Revenue contended that the goods should be classified under CTH 5407 as polyester woven fabrics, while the Appellant classified them under CTH 6304 as bedspreads. The Revenue issued a Show Cause Notice alleging mis-declaration, leading to confiscation of goods, duty demand, redemption fine, and penalty. The Appellant challenged this order before the Tribunal (Para 2).

The Appellant argued that the goods, despite being made of polyester, were intended to be used as bedsheets due to their size and design. They highlighted that the goods were loosely stitched for easy separation into two bedsheets, emphasizing their use as bedsheets. The Appellant also cited previous cases where similar issues were decided in favor of treating similar goods as quilt covers or bedspreads, not as fabrics (Para 4-6).

The Tribunal reviewed the facts and test reports. While the test reports were inconclusive, the nature and size of the goods indicated their common usage as bedsheets. The Tribunal referenced Section XI Note 7, emphasizing that the goods were "made up" articles ready for use without sewing, supporting classification under CTH 6304. They also cited precedents where similar goods were classified as quilt covers or bedspreads based on common parlance usage and size (Para 9-16).

The Revenue argued that the goods did not meet the criteria for made-up articles of textiles under Section 7. They contended that since both sides of the fabrics were not stitched or hemmed, the goods should be classified as polyester woven fabrics under CTH 5407 (Para 7).

In conclusion, the Tribunal upheld the lower authority's decision, classifying the goods under CTH 6304 as bedspreads and dismissing the Revenue's appeal. The Tribunal emphasized the common parlance usage of the goods as bed sheets and the precedents supporting this classification (Para 16).