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Issues: Classification of imported goods for tariff and Import Trade Control (ITC) purposes.
In this judgment by the Appellate Tribunal CEGAT, Mumbai, the issue at hand was the classification of goods imported by the respondent for both tariff and Import Trade Control (ITC) purposes. The respondent had declared the goods as books under Heading 49.01, seeking exemption under Notification 36/96. However, the Custom House disagreed, noting the printing on the goods suggested they were greetings. Consequently, the Custom House proposed classifying the goods under Heading 49.09 for ITC, with potential confiscation and penalty. The Assistant Commissioner upheld this classification, leading to an appeal by the importer. The importer argued before the Commissioner (Appeals) that the goods, containing 28 or 32 pages with literary and artistic content, were greetings in book form, supported by the presence of the International Standard Book Number (ISBN). The Commissioner (Appeals) agreed, distinguishing between cards and books based on their form and content, setting aside the Assistant Commissioner's order. The Department challenged this decision, emphasizing the goods' intended use for specific occasions as distinguishing them from books bought for literary or artistic content. The advocate for the respondent countered, highlighting the goods' substantial literary and artistic material beyond typical greetings cards, referencing the Harmonised Commodity Description and Coding System and Chapter Note IVA to Chapter 49 of the tariff. The Tribunal examined samples of the goods, noting their structure as folded sheets with greetings and ISBN marks, falling under Heading 49.09 for printed or illustrated postcards bearing personal messages. The Tribunal concluded that the goods were intended for sending to recipients, not for personal reading satisfaction, thus classifying them as greetings cards rather than books under Heading 49.09. Regarding a previous case cited by the respondent's advocate, involving a decision on the classification of a book with trace-out models, the Tribunal noted the specific circumstances and limited applicability of that decision. Ultimately, the Tribunal ruled that the goods in question were correctly classified under Heading 49.09 as greetings cards for both tariff and Import Policy alignment, overturning the Commissioner (Appeals)'s classification as books. The order for confiscation and tariff classification by the Assistant Commissioner was restored, but the penalty was deemed unjustified due to the importer's genuine belief that the goods were books, leading to the exclusion of the penalty imposition.
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