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TMI Blog2007 (7) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... t, they classified the beef leather cut pieces under CTH 4115 20 90. On the basis of first appraisal and examination report of the Department s leather expert, the Customs authorities rejected the classification proposed by the importer and took the view that the goods were finished leather cuttings liable to be classified under CTH 4205 00 90 as articles of leather. Accordingly, the benefit of the Notification was denied to the party, who were directed to pay duty on merits. As the party asked for a speaking order without issue of show-cause notice, they were heard by the Deputy Commissioner of Customs (Group - 2), who passed a detailed order and directed them to pay duty of Rs. 22,86,812/- on beef leather cut pieces mentioned at Sl. Nos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Commissioner of Central Excise - 2003 (152) E.L.T. 152, wherein crust leather was held to be not finished leather as it had to undergo further processing to become finished leather. Similarly, the cut pieces of finished leather imported by the appellants were not to be considered as articles in ready-to-use condition inasmuch as they required stitching and other processing to become car seat covers, articles in ready-to-use condition. It was further submitted that the Revenue s attempt to classify the imported item as articles of leather was not supported by HSN Explanatory Notes either. It was also pointed out that identical goods imported by the appellants through Bangalore airport had been classified under Heading 4115 20 90 and the be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ather were not covered under the said heading but classifiable under Heading 42.05. It was argued that functional utility, design, shape and predominant usage had also got to be taken into account while determining classification of an item. As, in the instant case, the finished leather cut pieces were of a design and shape suitable for car seat cover, they required to be classified as an article of leather rather than as waste of leather. In this connection reliance was placed on the Supreme Court s judgment in O.K. Play (India) Ltd. v. Commissioner of Central Excise - 2005 (180) E.L.T. 300 (S.C.). 4. After considering the submissions, we note that Chapter 41 of the Tariff covers raw hides and skins (other than furskins) and leather. Hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 as parings and other waste of leather or of composition leather, not suitable for the manufacture of leather articles. But leather articles, admittedly, fall under Chapter 42. The finished leather cut pieces in question were admittedly meant to be used for making car seat covers through stitching and other processes. In other words, the finished leather cut pieces were suitable for the manufacture of car seat covers. But car seat covers have not been classified as articles of leather. Instead, they have been classified under Heading 87.08 as accessories of car seats vide Guru Overseas Pvt. Ltd. v. Commissioner of Central Excise - 2001 (132) E.L.T. 60 (Tri.-Del.). Contextually, it may also be mentioned that the CBEC has also accepted car ..... X X X X Extracts X X X X X X X X Extracts X X X X
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