1991 (8) TMI 211 - AT - Customs

Summary

Issues:
Classification of imported item under Customs Tariff Act, confiscation for ITC violation, imposition of penalty, re-export permission without fine and penalty.

Classification under Customs Tariff Act:
The appeal challenged the order classifying the imported item as a toy under Serial No. 172 of Appendix 2B. The appellants argued that the item, Robert Dunken's Jungle Book, containing press-out models, should be considered a book based on commercial parlance and trade practices. They presented evidence from suppliers, ISBN agency, and book sellers to support their claim that the item is recognized as a book in the trade. The appellants contended that the item's predominant use for assembly by children does not negate its classification as a book. The Judge found merit in the appellants' argument, ruling in their favor and allowing re-export without fine and penalty.

Confiscation for ITC Violation and Penalty Imposition:
The Additional Collector had ordered confiscation of the goods for ITC violation and imposed a personal penalty along with a redemption fine for clearance for home consumption. The appellants did not challenge the classification aspect for the purpose of assessment of duty but contested the confiscation and penalty imposition. The Judge noted that the appellants were only interested in re-exporting the goods and had not chosen to clear them for home consumption. As the appellants did not challenge the Customs classification for duty assessment, the Judge held that the classification would also apply for ITC purposes. However, the Judge disagreed with the Respondent Collector's argument that the item's predominant use for recreation over education disqualified it as a book. The Judge ruled in favor of the appellants, allowing re-export without fine and penalty.

Re-Export Permission without Fine and Penalty:
The appellants sought permission for re-export without facing any fine or penalty. The Judge, after considering the arguments and evidence presented by both sides, ruled in favor of the appellants. The Judge emphasized that the item's recognition as a book in trade practices and the lack of rebuttal from the Department supported the appellants' claim. Consequently, the Judge allowed the request for reshipment of the books without imposing any fine or penalty, with a stipulated timeframe for exercising this right.

In conclusion, the judgment favored the appellants' argument that the imported item should be classified as a book rather than a toy, based on trade practices and commercial understanding. The Judge allowed re-export of the goods without imposing any fine or penalty, emphasizing the item's recognition as a book in the trade and rejecting the Department's objections based on the item's recreational use and form after assembly.