2023 (5) TMI 148 - AT - Customs

Change of classification of the goods imported by the appellant - Paddle of canoes - to be classified under the heading 95062900 or under the heading 95062900/heading 68151090 - HELD THAT - The appellant have imported paddles of canoes made of carbon fibres. Canoes are classifiable under heading 89039910. Chapter note 1(p) of Chapter 95 excludes means of propulsion from Chapter 95 and puts it in chapter 44, if they are made of wood. Chapter Note 1(p) to Chapter 44 excludes toys, games, sports requisites from chapter 44 and places them in chapter 95 - Combined reading of Chapter 1(p) of Chapter 95 and 1(p) of Chapter 44 clearly implies that means of propulsions of sports crafts such as canoes and skiffs would be excluded from Chapter 95 and would fall under the Chapter relevant to the material of which the same are made of. It also becomes apparent that the paddles (means of propulsion) do not get covered by the description toys, games and sports requisites appearing in above mentions Chapter Notes. The goods are correctly classifiable under Chapter Heading 68151090 - Appeal dismissed.

Summary

Issues:
Classification of imported goods - Paddle of canoes made of carbon fibres with wooden handle.

Summary:
The appellant imported paddles of canoes and sought classification under heading 95062900, while the Revenue classified the goods under heading 89039910 and 68151090 in separate orders. The appellant argued that the goods should be classified under Chapter 95 based on Chapter Note 1(p) excluding sports craft made of wood. The appellant also contended that Chapter Note 1(p) of Chapter 6815 excludes articles of Chapter 9506. Furthermore, the appellant highlighted the uncertainty of revenue regarding correct classification and challenged the penalty imposed in a related matter.

The authorized representative cited HSN Explanatory Notes in Chapter 89 to support the exclusion of parts made of wood from Chapter 95, emphasizing that wooden oars and paddles fall under Chapter 44. The representative argued that the paddles made of carbon fibre should be classified under Chapter 68, as proposed in a previous appeal. The Tribunal considered these arguments and found that the paddles of canoes made of carbon fibres are correctly classifiable under heading 89039910, ruling out classification under Chapter 89. The order classifying the goods under Chapter Heading 89039990 was set aside due to the chapter note exclusion. In another appeal, the Tribunal determined that the goods should be classified under Chapter Heading 68151090 based on the combined reading of Chapter notes excluding toys, games, and sports requisites from Chapter 68. Consequently, the Customs Appeal No. 51051 of 2020 was dismissed.

In conclusion, the Tribunal upheld the classification of the imported goods as paddles of canoes made of carbon fibres under the relevant headings, dismissing one appeal and setting aside another, while addressing the arguments presented by both parties.

[Order pronounced on 03.05.2023]