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of <h1>Classification of Drawing Colour Doodle as slate or toy: ruled classifiable under Customs Tariff Item 9610 0000</h1> Classification dispute concerns whether imported drawing boards are toys or writing/drawing slates. Applying General Rules for the Interpretation and ... Classification of imported goods - goods described as 'Drawing Colour Doodle' classifiable under Customs Tariff Item 9610 0000 (slates and boards with writing or drawing surfaces) Or under CTI 9503 0090 (toys) - General Rules for the Interpretation (GIR) - Harmonized System explanatory notes - Customs Tariff Item 9610 0000 - Customs Tariff Item 9503 0090 - assessment and demand u/s 28(1) of the Customs Act, 1962 - confiscation and penalties under Sections 111(d), 112, 114A and 114AA of the Customs Act, 1962 - HELD THAT:- It is not in dispute that the imported goods are used for writing or drawing or scribbling and such matter written, drawn could be erased and again it could be used for a number of times. Therefore, playing with counting frames or drawing which create amusement cannot qualify for classification as ‘educational toy’ under CTI 9503 0090, since only toy chemistry; printing, sewing and knitting sets and the like products are illustrated for explaining the phrase ‘educational toy’ in HSN and the impugned goods i.e. ‘drawing board/slate’ does not get covered therein. Furthermore, sub-heading 9503 90 is for classification of parts, whether electronic or other toys. Therefore, we find that the imported goods are rightly classifiable under CTI 9610 0000 and not under CTI 9503 0090. Therefore, the impugned order is liable to be set aside. As it could be seen that in the present case, when the classification of goods can be arrived at by following GIR-1, by detailed analysis of the specific customs tariff items under the respective headings, then there is no case for invoking GIR-4 arbitrarily, as discussed in the impugned order, even though it is shown that the original authority had proceeded sequentially. Further, the learned Commissioner of Customs in the impugned order had not taken an elaborate analysis of the product, its features with respect to the scope of coverage of each of the items under the various sub-headings, tariff items in arriving at the appropriate classification of the impugned goods, under any specific CTI for enabling comparative analysis at the six/eight digit level. Thus, it is not feasible to determine appropriate classification by application of GIR-4 as had been done in the impugned order. In careful reading of above HSN explanatory notes, it is understood that heading 9610 covers under its scope all types of boards or slates, which are designed to be used for writing or drawing, with base material of the board, whether wood, paperboard, textile material, felt wood, paperboard, textile material, asbestos cement etc., or any other coating suitable for writing on, or sheeting of plastics. Therefore, in terms of HSN explanatory notes for classification of goods, the impugned goods are more appropriately classifiable under the heading 9610 and not under the heading 9503. Thus, we are of the considered view that the impugned goods are classifiable under 9610 0000 of the Customs Tariff. In the result, by setting aside the impugned order dated 05.02.2024, we allow the appeal in favour of the appellants with consequential relief, if any, as per law. Issues: (i) Whether the imported goods described as 'Drawing Colour Doodle' are classifiable under Customs Tariff Item 9610 0000 (slates and boards with writing or drawing surfaces) as claimed by the appellant or under CTI 9503 0090 (toys) as determined by the original authority; (ii) Whether the confirmation of demand, extended period reassessment, redemption fine and penalties based on the classification in the impugned order are sustainable.Issue (i): Classification of the imported goods as CTI 9610 0000 or CTI 9503 0090.Analysis: The classification exercise is governed by the General Rules for Interpretation (GIR) of the First Schedule and HSN Explanatory Notes. GIR-1 gives precedence to the terms of the headings and related Notes. Chapter 96 heading 9610 explicitly covers slates and boards designed for writing or drawing, including boards of various base materials and coatings suitable for writing, and continues to include boards bearing permanent markings or incorporating counting frames. Chapter 95 heading 9503 covers toys and illustrative items; the listed illustrative toys and explanatory notes show focus on articles designed essentially for amusement or play (including puzzles and certain educational toy exemplars). The subject goods are writing/drawing boards with an erasable surface and a magnetic pen, commonly used for drawing or writing and repeatedly re-usable; these characteristics align with the scope of heading 9610. Where GIR-1 permits classification under a specific heading by its terms and explanatory notes, there is no necessity to invoke GIR-4.Conclusion: The imported goods are classifiable under CTI 9610 0000 (in favour of the appellant on Issue (i)).Issue (ii): Sustainability of the demand, extended period reassessment, redemption fine and penalties premised on the impugned classification.Analysis: The demand, reassessment and penal consequences rested on the re-classification of the goods as toys under CTI 9503 0090. Since the classification has been determined to fall under CTI 9610 0000 by applying GIR-1 and HSN Explanatory Notes, the legal basis for the confirmed differential duty, extended period invocation and consequent fines and penalties is unsustainable to the extent founded on the incorrect classification.Conclusion: The confirmation of demand, reassessment under extended limitation, redemption fine and penalties based on classification under CTI 9503 0090 are not sustainable (in favour of the appellant on Issue (ii)).Final Conclusion: The impugned order dated 05.02.2024 is set aside and the appeal is allowed with consequential reliefs as per law.Ratio Decidendi: Where GIR-1 and the HSN Explanatory Notes permit classification of goods by the specific terms of a heading, goods described and designed primarily as writing or drawing slates/boards must be classified under CTI 9610 and not as toys under CTH 9503; classification must follow the most specific statutory description before resorting to GIR-4.
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