Commercial identity test for imported bed sheets supported classification as made-up articles, not woven fabric.

Imported polyester goods described and marketed as bed sheets were treated as made-up furnishing articles under Heading 6304, not as woven fabrics under Heading 5407, because their size, appearance, commercial identity and intended use supported classification as bed sheets. Inconclusive test reports and the absence of complete hemming did not displace the common parlance and commercial identity analysis. Section XI Note 7 was applied to confirm that the goods answered the description of made-up articles by reason of ready use. On that basis, reclassification was found unsustainable and the confiscation, duty demand, redemption fine and penalty based on the contrary view were not upheld.

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Issues: Whether the imported polyester goods, described as bed sheets, were correctly classifiable under Heading 6304 as made-up furnishing articles or under Heading 5407 as woven fabrics; and whether the confiscation, duty demand, fine, and penalty based on reclassification were sustainable.

Analysis: The goods were imported in specified sizes as bed sheets and were loosely stitched in a manner that allowed separation into two sheets. The test reports were found to be inconclusive and did not decisively establish that the goods were merely fabrics under Heading 5407. On the surrounding facts, the size, appearance, and market use of the goods supported classification as bed sheets under Heading 6304. Section XI Note 7 was considered, and the view was taken that the goods answered the description of made-up articles by reason of their ready use and commercial identity. Applying the common parlance test, the Tribunal found the Revenue's reclassification unsustainable.

Conclusion: The goods were held to be classifiable under Heading 6304 and not under Heading 5407. The Revenue's appeal failed, and the confiscation, penalty, and redemption fine based on the contrary classification were not upheld.

Ratio Decidendi: Where imported textile goods, by size, appearance, and intended market use, are commercially identifiable as bed sheets, inconclusive test reports and absence of complete hemming do not justify classification as mere woven fabric if the common parlance test supports treatment as made-up articles.

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