Accepted customs classification cannot be disturbed on delayed sampling without proof of misdeclaration; penalty was also unwarranted.

Imported readymade garments were cleared on the basis of a classification accepted by the department at the time of import, and later attempted reclassification was not supported by evidence of misdeclaration. The sample was drawn only after a delay of about two and a half years, by which time the goods had become obsolete, weakening the basis for disturbing the original tariff treatment. In the absence of material proving wrongdoing, the proposed change in classification did not justify reversal of the accepted position, and penalty was also not warranted. The impugned order in favour of the importer was sustained and the Revenue's appeal failed.

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Issues: Whether the imported readymade garments were liable to be reclassified under a different customs tariff heading after the department had accepted the original classification at the time of clearance, and whether any penalty was warranted for alleged misdeclaration.

Analysis: The goods were cleared on the basis of the declared classification, which had been accepted by the department at the time of import. The sample was drawn after a substantial delay of about two and a half years, by which time the goods had become obsolete. No evidence was brought on record to establish misdeclaration. In these circumstances, the proposed reclassification did not justify interference with the order allowing the claim, and the facts also did not support imposition of penalty.

Conclusion: The challenge to the order failed, and the appeal was rejected.

Final Conclusion: The impugned order in favour of the importer was sustained, and the Revenue's appeal did not succeed.

Ratio Decidendi: Where the department has accepted the classification at the time of clearance and no material is produced to prove misdeclaration, a later reclassification based on delayed sampling does not justify reversal of the accepted position or penalty.

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