TaxTMI 
TaxTMI 
2026 (2) TMI 1168
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....ganj in which he decided the proposals made in following three show cause notices [SCN]:- (i) SCN dated 06.07.2021 issued by the Inland Container Depot, Patparganj, New Delhi ; (ii) SCN dated 01.07.2021 issued by the Inland Container Depot (Import), Tughlakabad, New Delhi ; (iii) SCN dated 27.08.2021 issued by the Air Cargo Complex (Import), New Customs House, New Delhi. All three SCNs were issued based on the investigation conducted by officers of Customs (Preventive), New Customs House, New Delhi. 2. The facts which led to the issue of the impugned order are that the officers of the Customs (Preventive), New Delhi, acting on intelligence, put an alert on Bill of Entry No. 4171376 dated 22.07.2019 and exami....
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....and had incurred substantial advertisement and promotion expenses but had not included them in the assessable value of the imported goods. The show cause notices proposed recovery of differential duty both on account of change in the classification of the two items mentioned above and proposing to include the advertisement and promotion expenses incurred by the appellant in the value. However, the Commissioner, after considering the submissions made by the appellant dropped the demand of differential duty of Rs. 1,16,13,543/- under section 28 (4) of the Customs Act, 1962 [the Act] on account of inclusion of the advertisement and promotion expenses incurred by the appellant to promote Columbia brand garments. There is no appeal by the Revenu....
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....ve for the Revenue vehemently supported the impugned order and submitted as follows :- (i) The importer's authorized representative accepted that the jackets were woven and not knitted and deserve to be classified accordingly ; (ii) The mis-classification of the goods directly resulted in payment of lower rate of duty and revenue loss. Therefore section 28 (4) of the Act was correctly invoked ; (iii) The appellant had accepted the classification and, therefore, cannot challenge it now ; (iv) The advertisement and promotionally expenses on account of which duty of Rs. 1,16,13,543/- were demanded in the show cause notice has been dropped by the Commissioner on the basis of binding that the advertisement and....
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....rom a knitted garment, (such as a T-shirt or a banian). There is no dispute that the imported garments were declared as knitted jackets but were found to be woven. 11. This takes us to the next question of classification. Chapter 61 of the Customs Tariff covers "articles of apparel and clothing accessories, knitted or crocheted". Chapter 62 of the Customs Tariff covers articles of apparel and clothing accessories not knitted or crocheted. Since the goods in question were woven and not knitted fabric, they deserve to be classified under Customs Chapter 62. The two competing entries under the Customs Tariff are as follows :- Sr. No. HSN Description Rate of Duty 6102 : WOMEN'S OR GIRLS' OVERCOATS, CAR-COATS, CAPES, CLOAKS, AN....