Textile classification fails where departmental testing does not follow HSN and accepted standards, defeating reclassification.

Reclassification of imported polyester fabric based on a departmental test report was unsustainable because the laboratory did not follow the prescribed HSN Explanatory Notes protocol or accepted textile testing standards. The examiner admitted that the assessment was only visual and microscopic, without the required conditioning, controlled testing, or proper apparatus to determine the textured nature of filament yarn. As the report did not provide a reliable basis for classification, the proposed reclassification was set aside in favour of the importer, and the connected revenue challenge to redemption fine did not survive.

---

---

Issues: Whether the imported polyester fabric could be reclassified on the basis of the departmental test report when the prescribed testing protocol under the HSN Explanatory Notes and accepted textile testing standards was not followed.

Analysis: The dispute turned on the reliability of the departmental laboratory report that treated the fabric as composed of textured filament yarn. The test examiner admitted in cross-examination that the examination was visual and microscopic, and that the standard method for determining textured nature of filament yarn under the accepted textile testing regime had not been followed. The prescribed conditioning and testing protocol under the HSN Explanatory Notes, as well as the relevant standard methods for testing textiles, required proper conditioning and testing in a controlled atmosphere, with apparatus suitable for determining crimp and related characteristics. Since the departmental report did not conform to those protocols, the material basis for reclassification could not be accepted.

Conclusion: The reclassification based on the departmental test report was unsustainable and was set aside in favour of the importer.

Final Conclusion: The importers succeeded on the core classification dispute, and the connected revenue challenge for redemption fine did not survive.

---