Tanned fur skin classification supports exemption for imported sheep skins under the tanning industry notification

Imported natural sheep fur skins were classified under Heading 43.02 as tanned or dressed fur skins, and Note 1 to Chapter 43 treated fur skins other than raw fur skins as hides or skins that have been tanned or dressed with hair or wool on. That classification supported the view that the goods were products of the tanning industry. In the absence of any material from the Revenue showing that the goods were raw fur skins or otherwise outside the tanning process, no further proof was required. The goods were therefore treated as eligible for exemption under Notification No. 115/75-C.E., and the appeal was allowed.

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Issues: Whether natural sheep fur skins imported by the appellant were products of the tanning industry and therefore eligible for exemption under Notification No. 115/75-C.E. dated 30-4-75.

Analysis: The imported goods were classified under Heading 43.02 of the Customs Tariff, which covers tanned or dressed fur skins. Note 1 to Chapter 43 of the Customs Tariff indicates that fur skins other than raw fur skins are hides or skins of animals tanned or dressed with the hair or wool on. On that basis, the classification itself established that the goods had undergone tanning or dressing. The appellant's claim that the goods were tanned hair-on sheep skins processed in a tannery was consistent with this classification. In the absence of any material from the Revenue to show that the goods were raw fur skins or otherwise not products of the tanning industry, no further proof was required.

Conclusion: The goods were held to be products of the tanning industry and eligible for the benefit of Notification No. 115/75-C.E. dated 30-4-75, and the appeal was allowed.

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