Made-up textile article classification prevails for shaped umbrella panels, while disclosed classification disputes cannot trigger extended limitation.

Textile fabric cut into triangular umbrella panels is treated as a made-up textile article where it acquires the essential character and commercial identity of an umbrella panel. Section Note 7 to Section XI covers articles cut otherwise than into squares or rectangles, and the specific heading for made-up textile articles takes precedence over the general heading for woven synthetic filament fabrics. Extended limitation for differential customs duty requires established suppression or misdeclaration; where the goods and claimed classification were fully declared in Bills of Entry, a classification dispute alone does not justify its invocation. Reclassification, differential duty, interest and penalty are therefore unsustainable on these stated principles.

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Issues: (i) Whether umbrella panel fabric cut into triangular shape and size is classifiable as made-up textile articles under Heading 6307 or as woven synthetic filament fabric under Heading 5407; (ii) Whether the extended period under Section 28(4) could sustain the differential-duty demand.

Issue (i): Whether umbrella panel fabric cut into triangular shape and size is classifiable as made-up textile articles under Heading 6307 or as woven synthetic filament fabric under Heading 5407.

Analysis: Section Note 7 of Section XI treats articles cut otherwise than into squares or rectangles as "made-up". The imported triangular panels had acquired the essential character and commercial identity of umbrella panels rather than textile fabric. Heading 6307 specifically covers made-up textile articles, whereas Heading 5407 is a general heading for woven fabrics of synthetic filament yarn; the specific heading prevails.

Conclusion: The goods are classifiable under Heading 6307 as made-up textile articles and not under Heading 5407. The finding is in favour of the assessee.

Issue (ii): Whether the extended period under Section 28(4) could sustain the differential-duty demand.

Analysis: The goods' description and classification were fully declared in the Bills of Entry and the assessments were completed without objection. No suppression or misdeclaration was established; consequently, a classification dispute could not justify invocation of the extended period.

Conclusion: The entire demand was barred by limitation. The finding is in favour of the assessee.

Final Conclusion: The reclassification, differential customs duty, interest and penalty could not be sustained either on classification or limitation.

Ratio Decidendi: Textile fabric cut into non-rectangular panels that acquires the essential character and commercial identity of a finished made-up article is classifiable under the specific heading for made-up textile articles; an extended limitation period requires established suppression or misdeclaration and cannot rest on an openly declared classification dispute.

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