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TMI Blog2024 (2) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Chapter Heading 3923 2990 as against the classification claimed by the appellant 6305 3200. In addition, since the sale of the goods between the appellant and the buyers did not represent a normal business transaction and the price was not sole consideration, it was alleged that the appellant had resorted to undervaluation with an intention to evade payment of duty during the period from February 2009 to July 2009. Accordingly, a differential amount of Rs.1,80,403/- was also demanded on account of undervaluation along with interest and penalty. 2. Heard both sides and perused the records. 3. With regard to classification, this Bench has already taken a view in the case of M/s. Big Bags Inda (P) Ltd. vide Final Order No.20796-20797/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmations are classifying the FIBCs under Chapter 39 whereas the FIBC finds a specific mention under tariff item 6305 02 of the drawback schedule and the exporters are being denied drawback mentioned against the heading 6305 02 in the Drawback Schedule. It is hereby clarified that FIBCs which are made of manmade textile material would be classifiable under drawback tariff item 6305 02. FIBCs which are big or bulk bags or super sacks made of polymers of ethylene and other plastic material would however, be classifiable under chapter 39 of the drawback schedule." 4.4 In the Minutes of the Meeting of DGFT held on 25-7-2013 clarified item FIBC which is reproduced as under :- "The Committee considered the case as per agenda along with other r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es such as dustbins, and cups which are used as tableware or toilet articles and do not have the character of containers for the packing or conveyance of goods, whether or not sometimes used for such purposes (heading 39.24), containers of heading 42.02 and flexible intermediate bulk containers of heading 63.05." 4.6 Further, we find that in the case of CCE vs. Karur KCP Packaging P. Ltd. (supra), the Tribunal by relying on the Hon'ble High Court's decision rendered in the case of Karur KCP Packings Ltd. vs. CC: 2015 (31) ELT 453 (Mad.), Board Circular and DGFT clarification, held that: "13. We also find that the Hon'ble High Court in the respondent's own case, i.e., M/s. Karur KCP Packaging Pvt. Ltd. allowed the writ petition holding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd and by respectfully following the Hon'ble High Court's order, we hold that FIBC is rightly classifiable under 6305 32 00 and not under 3923 29 90. Therefore, we do not find any infirmity in the order passed by the Commissioner (Appeals) and we uphold the same. Accordingly, the appeals filed by Revenue are dismissed. The cross-objections being in the nature of comments/reply to the appeals, they are disposed of." 4.7 In view of the above clarifications by the Board and DGFT and relying on the decisions in the case of Karur KCP Packaging P. Ltd. (supra), we hold that the goods are rightly classifiable under Chapter Heading 6305 32 00. Accordingly, the appeal is allowed." Following the above decision of this Bench, we set aside the deman ..... X X X X Extracts X X X X X X X X Extracts X X X X
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