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2024 (9) TMI 1429 - AT - CustomsClassification of importe dgoods - bed sheets - classifiable under CTH 5407 or under CTH 6304? - wilful misdeclaration of the goods - levy of penalties under Section 114A of the Customs Act, 1962 - HELD THAT - Admittedly, the goods in question are Bed spreads i.e., Bed sheets. Although made of 100% polyester yarn, it does not mean that the article loses its identity as Bed spreads / Bed sheets, which are properly classifiable under Customs Tariff Heading 6304. It is admitted that the articles which have been imported by the respondents are woven fabric of synthetic filament yarn, but they are Bed spreads / Bed sheets and quantity of the goods in numbers has been described by the respondents. In the circumstances, the merit classification of the impugned goods is under CTH 6304 of the Customs Tariff Act. Therefore, the impugned goods classified as Bed spreads (Bed sheets) classifiable under CTH 6304 of the Customs Tariff Act. In view of this, the impugned goods have been correctly classified by the respondents and the same are not liable for confiscation. The respondents are liable to pay duty by classifying the impugned goods under CTH 6304 of the Customs Tariff Act and no penalty is imposable on the respondents. No redemption fine is payable by the respondents. The appeals filed by the Revenue are dismissed.
Issues:
Classification of imported goods under Customs Tariff Headings 6304 and 5407, Misdeclaration of goods, Imposition of penalties under Section 114A of the Customs Act, 1962. Analysis: The case involved an appeal by the Revenue against the classification of imported goods declared as 'Polyester Bed Sheet' under Bill-of-Entry Nos. 8272855 and 8220682. The Revenue contended that the goods should be classified under CTH 5407, while the respondents classified them under CTH 6304. Show Cause Notices were issued, alleging misdeclaration by the respondents. The Orders-in-Original confirmed misdeclaration, leading to confiscation of goods, duty demands, redemption fines, and penalties under Section 112(a) of the Customs Act, 1962. The Revenue argued that penalties under Section 114A should have been imposed on the respondents for willful misdeclaration. The Authorized Representative for the Revenue contended that the respondents deliberately misclassified the goods, warranting the mandatory penalty under Section 114A of the Act. The Tribunal analyzed whether the respondents correctly classified the goods as 'Polyester Bed Sheet' under CTH 6304. The Tribunal noted that the goods were described as Bed spreads or Bed sheets made of 100% polyester yarn, falling under CTH 6304, which covers 'Other furnishing articles.' The Revenue sought to reclassify the goods under CTH 5407, which pertains to 'Woven fabrics of synthetic filament yarn.' However, the Tribunal held that the goods were properly classified under CTH 6304 as Bed spreads, emphasizing that even though made of synthetic filament yarn, they retained their identity as Bed sheets. Consequently, the Tribunal classified the goods as 'Bed spreads' under CTH 6304, ruling that they were correctly classified by the respondents and not subject to confiscation. Duty was to be paid under CTH 6304, and no penalties or redemption fines were imposed on the respondents. As a result, the appeals filed by the Revenue were dismissed, and the operative part of the order was pronounced in open court.
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