TaxTMI 
TaxTMI 
2025 (8) TMI 419
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....l of entry Actual 1. 6622616/ 11.11.2024 Ballons (Pack of 3) 75800 75800 Ballons (Pack of 1) 60000 60000 2. 6715468 dt.16.11.2024 Ballons (Pack of 3) 60200 52000 Trolley Bags (set of 2)16"& 20" 500 Sets 0 Trolley Bags (18") 500 pcs 0 Trolley Bags (16") 0 550 pcs. 2.1. It was seen that the items imported vide Bill of Entry No 6622616 dated 11.11.2024 were as per declaration. It was found with respect to the Bill of Entry No 6715468 dated 16.11.2024, that the number of balloons were 52,000 packs as against the declared 60,200 packs; only 550 pieces (16") trolley bags were found as against declared number of 1,000 pieces i.e. 500 sets (2 PCs of size 16" & 20") plus 500 pieces (size 18''). Original Authority, vide order- in-original dated 05.02.2025, held that trolley bags are not liable to confiscation and penalty; "toy balloons" are liable to be confiscated; balloons imported are correctly classifiable under CTH 9503 0020 as against CTH 9505 9090 claimed by the respondents; the value of Toy Balloons needs t....
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....oading, transportation, margin of profit etc. was not allowed. He submits that as there is no mis-declaration or undervaluation, confiscation under Sections 111 (l) & (m); imposition of fine under Section 125 of Customs Act, 1962; imposition of Penalties under Sections 112(a)(i), 112 (a)(ii), 114A are not warranted. Moreover, the original authority held that there is no mis- declaration and to that the original order has not been challenged by the Revenue before Commissioner (Appeals). 6. Heard both sides and perused the records of the case. Brief issues involved in the case are as to whether the appellants mis-declared quantity and value of imported goods and as to whether the classification and value arrived at by the Revenue are correct and if so, the revenue appeal is maintainable. 7. Coming to the classification we find that the competing entries are 9503 0020 as against 9505 9090 under CTH. The appellants claimed classification under CTH 9505 9090 whereas the Revenue would like to classify under CTH 9503 0020. We find that the competing entries under CTH and HSN are as follows. 7.1. The heading 9503 of Customs Tariff Act is as under : - Tariff Item De....
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....ii) Toy balloons and toy kites. (viii) Tin soldiers and the like, and toy armaments. (ix) Toy sports equipment, whether or not in sets (e.g. golf sets, tennis sets, archery sets, billiard sets; baseball bats, cricket bats, hockey sticks). (x) Toy tools and implements; children's wheelbarrows. (xi) Toy cinematographs, magic lanterns, etc.; toy spectacles. (xii) Toy musical instruments (pianos, trumpets, drums, gramophones, mouth organs, accordions, xylophones, musical boxes, etc.). (xiii) Dolls' houses and furniture, including bedding. (xiv) Toy tableware and other toy household articles; toy shops and the like, farmyard sets, etc. (xv) Toy counting frames (abaci). (xvi) Toy sewing machines. (xvii) Toy clocks and watches. (xviii) Educational toys (e.g., toy chemistry, printing, sewing and knitting sets). (xix) Hoops, skipping ropes (other than those of heading 95.06),. diabolo spools and sticks, spinning and humming tops, balls (other than balls of heading 95.04 or 95.06). (xx) Books or sheets consisting essentially of pictures, toys or models, for cutting out and....
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....e heading 9505 specifically covers items including other entertainment articles used in festivals which in view of their intended use are generally made of non-durable material. The festive items mentioned in the Heading 9505 does not restrict it to the items for Christmas only, there are many festivals celebrated in this part of the world. It is not disputed that Holi is an important festival in this part of the world and that the water balloons have been traditionally associated with Holi and used by children and adult alike as an essential item of entertainment during celebration of Holi . Moreover, the material of which the water balloons are made is such that these balloons are fragile and non-durable and are intended to break on impact. Water Balloons are rather a single use item unlike toys that are durable in nature. A single use item cannot be considered as Toys. Hence, I am of the view that the items impugned goods i.e. 'Balloons for Holi' which are single use item and intended for Holi celebrations only and that too of non-durable material have been rightly classified under CTH 95059090 and cannot be termed as Toys falling under CTH 95030020. 5.9. I find that, t....