TaxTMI 
TaxTMI 
2024 (9) TMI 1364
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....7 dated 24/04/2017 with the quantity as 22176 pieces. 2. The Revenue is of the view that the said consignment contains "Polyester Woven Fabrics" and the same is classifiable under CTH 5407 whereas the Appellant had classified the goods under CTH 6304. Therefore, representative samples were drawn and thereafter, after completion of investigation, a Show Cause Notice was issued alleging that the appellant had mis-declared the goods. The matter was adjudicated and the goods were held to be mis-declared and consequently confiscated; demand of duty was confirmed against the respondent by classifying the goods under CTH 5407 along with redemption fine of Rs.2,50,000/-, Customs Duty of Rs. 56,80,751/- and penalty of Rs.1,00,000/- imposed under ....
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....rts to come to a conclusion that they are textile fabrics. He submits that the authorities have ignored the fact that the goods imported can be used only as bedsheets. The size of the product imported would clarify that this is meant to be used as bedsheets as declared by the appellant in the Bill of Entry and in the invoice received by them from the overseas exporters. 5. He submits that the issue is no more res integra. Similar issue had come up before this bench in the case of C & F, C, INC and many other importers (as a batch petition) which are all decided by CESTAT, Kolkata. The issue was that of polyester quilt cover received by the importers which has been stitched from two or three sides and one side folder and then these ....
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....eading 6304. 6.2 However, the Revenue has sought to re-classify the above goods under Customs Tariff Heading 5407, which classifies: - "54.07 - Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 54.04" 7. We admit that the articles which have been imported by the respondent are woven fabric of synthetic filament yarn, but they are Bed spreads / Bed sheets and quantity of the goods in numbers has been described by the respondent. In the circumstances, the merit classification of the impugned goods is under CTH 6304 of the Customs Tariff Act. Therefore, we classify the impugned goods as 'Bed spreads' (Bed sheets) classifiable under CTH 6304 of the Customs Tariff Act.....
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....ated by the proprietor of the firm when he was questioned by the Department officials. 10. On the other hand, if we go through the Test Reports, as noted in the order, we find that the test reports are not conclusive in their findings. In fact, it states that wefts are getting broken and weft yarns used in making the fabric cannot be determined. The Report says that the fabric contains 100% polyester but they are not even denying the fact that this cannot be a made-up bed sheet product - report of the Textile Committee. Overall, both the Test Reports are not conclusive and they do not give any definitive idea that the imported goods will fall under the category of fabrics under CTH 5407. On the other hand, the overall nature and size of ....
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.... of a particular size and shape could be seen. It has a cross border and it cannot be used for any other purposes other than as towels. Note 5 to Section XI makes it very clear that if any product is separated by cutting, dividing threads, it will remain within the ambit of made up articles classifiable under Chapter 63 of the Tariff. We are not convinced by the submission of ld. DR that the dividing thread in the product of the manufacturer is not a dividing thread but it is a continuous fabrics. We also observe that by cutting the dividing thread, the towel is, therefore, ready for use. If it is hemmed, it will not take it away from the purview of made up article because it can be used as a towel without such sewing. In these facts and ci....
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....es, the issue is more or less similar though not identical. The Tribunal in the case of C. F. Inc., A Unit of Surinder Kumar & Sons (HUF) vide its Final Order Number 75827-75840/2024 dated 30/04/2024 has come to the following conclusion:- 7. As per the said opinion, it is clearly stated that appropriate classification of the said goods is Polyester woven printed quilts and the imported goods have been presented by the appellants as 'Polyester woven Quilt Cover'. If the same are detached then it will look like bed sheet, which is not the correct view of the Revenue and in similar set of facts, this Tribunal has examined the issue in the case of M/s. Annapurna Industries & Others vide Final Order No.FO/77308- 77315/2017 dated 30.08.2....