2000 (5) TMI 528 - AT - Customs

Summary

Issues:
Classification of "typing correction instrument in the shape of a pen" under ITC (HS) Exim Code No. 39261009.10 or 38249029.80.

Analysis:
The case involved the classification of a "typing correction instrument in the shape of a pen" under two different Exim Codes - No. 39261009.10 as claimed by the appellants and No. 38249029.80 as held by the Revenue. The Customs contended that the item was not a writing pen but a correction instrument for typing errors, thus classifying it under 38249029.80, requiring a specific import license. The appellants argued that the item should be classified as "office stationery" under 39261009.10 and did not require a specific license. The Additional Commissioner ordered confiscation of the goods and imposed a fine and penalty. The appellants appealed to the Tribunal challenging the classification.

The Consultant for the appellants argued that the goods should be classified as "stationery articles" under 39261009.10 and not as "products of chemical and allied products" under 38249029.80. He emphasized that goods should be classified as known in the trade parlance and pointed out discrepancies between the Customs Tariff and HSN. He highlighted that typing error erasing pens fall under "other supplies of the kind classified as stationery" and should not be treated as writing instruments. The Tribunal agreed with the appellants, holding that the item falls under "office stationery" and should be classified under 39261009.10, not requiring a specific import license. The Tribunal set aside the impugned order, ruling the confiscation and penalties as unwarranted.

In conclusion, the Tribunal allowed the appeal, providing consequential relief to the appellants by holding that the "typing correction instrument in the shape of a pen" is classified as "office stationery" under Exim Code No. 39261009.10, thereby overturning the previous classification under 38249029.80. The Tribunal deemed the confiscation of goods and imposition of penalties unjustified, leading to the setting aside of the impugned order in favor of the appellants.