Finished leather classification upheld where off-white leather met prescribed processing norms without mandatory dyeing

Off-white leather cow lining exported by the assessee was held to satisfy the definition of finished leather for Customs Tariff classification and DEEC benefit purposes. The prescribed public notice listed the relevant processes for off-white or white leather, and dyeing was not one of the mandatory operations. Because the goods were admittedly off-white leather, the absence of a medium or dark shade did not amount to non-compliance with the applicable norm. The duty demand, penalty, and denial of DEEC benefits were therefore not sustainable.

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Issues: Whether off-white leather cow lining exported by the assessee qualified as finished leather for the purpose of Customs Tariff classification and DEEC benefits, notwithstanding the absence of dyeing imparting a medium or dark shade.

Analysis: The relevant public notice prescribed the processes for off-white or white leather as levelling, combination tanning, fat liquoring, setting, staking or boarding, producing a clean flesh side by mechanical means, protective coat and plating, embossing or ironing or polishing. Dyeing was not included among the prescribed operations. Since the goods were admittedly off-white leather, failure to impart a medium or dark shade could not be treated as non-compliance with the prescribed norm.

Conclusion: The goods satisfied the definition of finished leather and the duty demand, penalty, and denial of DEEC benefits could not be sustained, in favour of the assessee.

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