Classification of polyester bed sheets under Customs Tariff Heading 6304 upheld; reclassification as woven fabric rejected.

Imported polyester bed sheets retained their essential character as bed sheets or furnishing articles and were correctly classifiable under Customs Tariff Heading 6304. Mere use of polyester yarn did not convert them into woven fabrics under Heading 5407, so the Revenue's reclassification was unsustainable. As a result, the consequential duty demand, confiscation, redemption fine and penalty could not survive.

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Issues: Whether imported polyester bed sheets were classifiable under Customs Tariff Heading 6304 as claimed by the importer or under Customs Tariff Heading 5407 as alleged by the Revenue, and whether the consequential demand, confiscation, redemption fine and penalty could survive.

Analysis: The imported goods were described as bed sheets made of polyester and were declared in numbers. Goods of this description retain their character as bed spreads or bed sheets and are properly classifiable under CTH 6304, which covers other furnishing articles. Mere use of polyester yarn does not change the essential identity of the goods into woven fabrics under CTH 5407. On that basis, the earlier decisions relied upon were followed and the Revenue's reclassification was held to be unsustainable.

Conclusion: The goods were correctly classifiable under CTH 6304, and the confiscation, duty demand, redemption fine and penalty were not sustainable.

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