2010 (2) TMI 482 - AT - Customs

Fabrics - The Revenue filed this Appeal against the impugned order whereby the Commissioner (Appeals) accepted the declaration in respect of polyester fabrics and allowed the benefit of Notification No. 14/2006-Cus., dated 1-3-2006. Held that - expert opinion that fabric can be used as upholstery does not call for classification as upholstery material. Expert opinion does not support case of revenue. Revenue s appeal dismissed.

Summary

Issues: Classification of goods as upholstery material for customs duty benefit under Notification No. 14/2006-Cus.

Analysis:
1. Issue of Classification: The Revenue appealed against an order accepting the declaration of polyester fabrics for customs duty benefit under Notification No. 14/2006-Cus. The Revenue argued the goods were upholstery material based on a report from the Textile Committee, Mumbai.

2. Contentions of the Revenue: The Revenue contended that the goods could be classified as upholstery material as per the Textile Committee's report, alleging misdeclaration by the Respondent to benefit from the Notification.

3. Respondent's Defense: The Respondent stated that the fabric sample was sent to the Textile Committee, Kolkata, which did not provide a clear opinion on its classification. Subsequently, the sample was sent to the Textile Committee, Mumbai, which opined that the fabric could be used as upholstery material. The Respondent argued that the end-use of the fabric was based on customer choice and fashion trends, indicating it was not solely upholstery material.

4. Expert Opinion and Decision: The Tribunal noted that the Kolkata Committee did not provide an opinion, while the Mumbai Committee suggested the fabric could be used as upholstery material. Considering that the end-use was flexible based on customer preference, the Tribunal emphasized that expert opinions should be precise and definite. As the expert opinion did not conclusively support the Revenue's case, the Tribunal found no grounds to overturn the original order, dismissing the Revenue's appeal.

This detailed analysis of the judgment highlights the key arguments presented by both parties, the role of expert opinions in classification disputes, and the Tribunal's decision based on the evidence and legal principles involved in the case.