2010 (5) TMI 265 - AT - Customs

Appellate Tribunal rules off-white leather as finished for export, overturns duty demand.

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellant, Ms. Jyoti Balasundaram, determining that the off-white leather cow lining ... Leather- - The authorities below have confirmed a demand of duty of Rs.3,73,395/- and imposed penalty and denied DEEC benefits to the goods in question namely off-white leather cow lining which is the product under export, on the ground that it would not qualify for the definition of finished leather and instead attracts duty @ 60% in terms of the Second Schedule to the Customs Tariff Act. Held that- process required for impugned goods as per DGFT Public Notice No. 3-ELT (PN) 92-97 dated 27.05.1992 not includes dyeing so as to impart medium/dark shade. Goods confirm to definition of finished leather. Appeal allowed. The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellant, Ms. Jyoti Balasundaram, regarding the classification of off-white leather cow lining for export. The tribunal found that the goods qualified as finished leather and were eligible for DEEC benefits, overturning the lower authorities' decision based on the absence of dyeing imparting medium/dark shade. The tribunal concluded that the goods met the required processes for finished leather as per Public Notice No. 3-ETC (PN) 92-97 dated 27.5.1992, setting aside the duty demand and penalty imposed.