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TMI Blog2017 (4) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... tance, filed bill of entry no. 5861206 dated 4th July 2016 for the import of 'PVC inflatable toys' which, however, was held by the original authority to be classifiable under heading no.9506 9990 of the First Schedule to the Customs Tariff Act, 1975 and further denying them the benefit of preferential duty under the Asia-Pacific Trade Agreement. The items that were denied the preferential rate were (i) realistic starfish pool (ii) smiley giraffe baby pool (iii) sunset glow baby pool and (iv) seahorse pool and the classification was so decided owing to existence of the specific heading 'swimming pools and paddling pools' which the adjudicating authority found to be most appropriate. The first appellate authority also upheld t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... toys as were in conformity with the standards prescribed in ASTMF963 or standards prescribed in ISO 8124 in (parts I-III) or IS 9873 or standards prescribed in each in EN 71 and accompanied by a certificate of conformance from the manufacturer that representative samples of the toys being imported had been tested and cleared by specified independent laboratory. Though the imports relate to a later period than regime of the said notification, Learned Counsel submits that the standards prescribed therein for licit import relate to the goods imported. It is also the contention of the Learned Counsel that identical goods had been imported on earlier occasions and, with the classification accepted therein, it is not within the scope of proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds indicating the same to be 'paddling pools'. 5. We observe that a 'paddling pool' is one in which children can be introduced to the basics of swimming or water callisthenics; these would naturally be smaller and shallow version of swimming pools with sufficient water to enable the appropriate exercise without endangering the safety of inexpert users. Upon careful of the descriptions, we note that the dimensions and the depth do not permit such exercises to be carried out even by tiny tots in these products. Consequently, these imported goods, upon inflation, are nothing but reduced models of the 'real McCoy.' The issue for determination is, therefore, restricted to the plausibility of classification of reduced mod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t will be convenient to advert to the said Item. Item 14E of the First Schedule reads as under. "Patent or proprietary medicines not containing alcohol, opium, Indian hemp or other narcotic drugs or other narcotics other than those medicines which are exclusively ayurvedic, unani, sidha or homeopathic." Explanation I to the said Item provides that patent or proprietary medicines means any drug or medicinal preparations, in whatever form, for use in the internal or external treatment of, or for the prevention of ailments in, human beings or animals which bears either on itself or on its container or both, a name which is not specified in a monograph, etc. A careful reading of the aforesaid explanation makes it clear that the main ingre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical instrument' and 'musical instrument' for the purpose of classification thus '7. It is evident from the size and number of the articles imported (25,500 pcs of Electronic Organ "Piano small size") and the price at which they were imported, that they could not be regular musical instruments falling under Heading 9207.10. These were clearly toy instruments, though described as "Piano small size ". They were not regular musical instruments of smaller size. In fact, the importer had accepted before the lower authority that they did not understand the classification before importing them. There was absolutely no valid reason for the Appellate Commissioner to upset the finding of the Addl. Commissioner that the goods were not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the value declared by the appellant is rightly held to be the transaction value, while upholding the order-in-original except as regards the declaration of invoiced value, we order that fine in lieu of confiscation which was Rs. 6,50,000/- be reduced to Rs. 3,50,000/- (rupees three lakhs & fifty thousand only) and the penalty also be reduced from Rs. 1,50,000/- to Rs. 75,000/- (rupees seventy-five thousand only) under Section 112(a) of the Act. The appeal is accordingly partly allowed.' Learned Counsel defended the declaration in the bill of entry. 9. The description in the catalogue makes it amply clear that the imported goods are reduced models. The decision cited above clearly require that such reduced models would, not unnaturall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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