TaxTMI 
TaxTMI 
2026 (3) TMI 421
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (bill of entry No. 109443 dated 04.09.2019) and claimed duty exemption at Sl. No. 494 of Notification. No. 152/2009 dated 31.12.2009 and self-assessed under Customs Tariff Heading (CTH) 6303 9200. The goods were examined on first check and samples were drawn and sent to the Textile Committee. The Customs authorities, relying on test reports from the Textile Committee, proposed reclassification of the goods under Customs Tariff Heading (CTH) 5903.90 (fabrics impregnated with plastics), the appellant contested the proposal, thereafter the remnant samples were sent to Custom House Chemical Laboratory (CRCL), Cochin. Based on the test reports of Textile Committee and CRCL a show cause notice (SCN) was issued proposing classification of the goods under Customs Tariff Heading (CTH) 5903.90 and proposal for confiscation of goods under Section 111(m) and penalties under Section 112(a) of the Customs Act, 1962. On adjudication goods were reclassified under Customs Tariff Heading (CTH) 5903.90 (fabrics impregnated with plastics) disallowing the benefit at Sl. No. 304 of Notification No. 82/2017-Cus dated 27.10.2017 and the demand of differential duty amounting to Rs. 5265/- in the case of b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is non-binding in nature; Sections 4(2)(i) and 11(3) of the Textiles Committee Act, 1963 provides that the function of the Committee is to "advise on all matters relating to the development of textile industry and the production of textile machinery" and that "on receipt of the report referred to in subsection (1), the Committee may tender such advice, as it may deem fit, to the manufacturer of textiles, the manufacturer of textile machinery and the applicant". The provisions clearly state that the report of the Committee is non-binding as it is advisory in nature; the Textile Committee Report fails to access the required parameters as given in Annexure 2 of the Revised test charges of Laboratories of Textiles Committee with effect from February-2018; the Report only examines limited parameters: fiber identification (confirming Polyester content), fiber blend composition (showing 93.2% Polyester and 6.8% dipped material described as "Polymer Based Material"), and mass per square meter. The remainder of the report focuses solely on testing for prohibited dyes and harmful amines, which are regulatory compliance tests rather than classification determinative tests; the report fails to....
X X X X Extracts X X X X
X X X X Extracts X X X X
....overed or laminated with plastics, whatever the weight per square metre and whatever the nature of plastic material (compact or cellular), other than: (1) Fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually Chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of any resulting change of colour. (2) Products which cannot, without fracturing, be bent manually around a cylinder of a diameter of 7 mm, at a temperature between 150C and 300C (usually Chapter 39); (3) Products in which the textile fabric is either completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of colour (Chapter 39); (4) Fabrics partially coated or partially covered with plastics and bearing designs resulting from these treatments (usually Chapters 50 to 55, 58 or 60); (5) Plates, sheets or strip of cellular plastics, combined with textile fabric, where the textile fabric is present merely for reinforcing purposes (Chapter 39);....
X X X X Extracts X X X X
X X X X Extracts X X X X
....icability of Heading 59.06 to certain fabrics as detailed therein. Its para (a) with which we are concerned, reads as under: "(5) Heading No. 59.06 does not apply to - (a) Fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually Chapters 50 to 55, 58 or 60); for the purpose of this provision, no account should be taken of by resulting change of colour;" 10. The learned counsel submits that; it is quite evident that the fabric in which the impregnation, coating or covering cannot be seen with the naked eyes would not stand covered by Customs Chapter Heading (CTH) 59.06 for the purpose of classification. It is only when the impregnation, coating or covering can be seen with the naked eyes on the fabric, the product would be classifiable under this Heading. A mere reading of the above will show that the subject goods - Polyester roller window blinds fabric do not meet these stringent requirements as the Textile Committee Report fails to demonstrate that any visibility testing was conducted, and there is no evidence that the Polymeric impregnation is visible to the naked eye as explicitly required by Note 2(a)(1). 11. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ly beyond mere fabric cutting. The goods meet the definition of "made-up" under point "(b)" as well, being "produced in the finished state, ready for use" with minimal additional processing required to function as window blinds; the key distinction is that true "assembly" in this context requires manufacturing processes that transform the textile materials into a new, purpose-specific product with distinct characteristics from the original materials; the base net fabric provides structural support and light filtration; woven with filament yarn creates functional strip designs that reinforce the structure and control light; the Polymeric impregnation transforms the material by enhancing durability, providing UV protection, adding dimensional stability, improving stain resistance, and potentially increasing fire retardancy; these combined manufacturing processes create a specialized product with distinct characteristics specifically designed for use as window blinds, justifying classification under Custom Chapter Heading 6303 as interior blinds. 14. The learned counsel submits that; the principle of specific over general classification applies to the subject goods; according to Ru....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ading 6303 in the bills of entry; the Textile Committee Report dated 24.09.2019 clearly states that the goods consist of more than 90% Polyester with the rest being "Polymer based material" under its Test Results. The definition of "Polyester" falls under the ambit of synthetic fibre according to Chapter Note 1(a) read with the definition of "synthetic" provided under the same note of Chapter 54, as under:- "1. Throughout this Schedule, the term man-made fibres means staple fibres and filaments NOTES: of organic polymers produced by manufacturing processes either: (a)by polymerisation of organic monomers to produce polymers such as polyamides, poly-esters, polyolefins or polyurethanes, or by chemical modification of polymers produced by this process (for example, poly(vinyl alcohol)prepared by the hydrolysis of poly(vinyl acetate) ); or (b) by dissolution or chemical treatment of natural organic polymers (for example, cellulose) to produce polymers such as cuprammonium rayon (cupro) or viscose rayon, or by chemical modification of natural organic polymers (for example, cellulose, casein and other proteins, or alginic acid), to produce po....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that; there can be no differential treatment; consistent classification of the goods by the Textile Committee across Ports in India; the facts set forth demonstrate a clear pattern of uniform classification by the Textile Committee for identical goods imported by the Appellant from the same supplier, M/s. Xera Co. Ltd., Korea, across multiple Indian ports, including Tughlakabad, Sonepat, Faridabad, Delhi, Chennai. and in each case resulted in classification under HS Code 6303, supported by Textile Committee Reports. The Test Report Number TC/LCH/Q/1349/2019-20, dated 04.07.2019, obtained by the Appellant with reference to an import of similar goods from M/s. Xera Co. Ltd., Korea., clearly specifies the grounds under which the imported goods were classified under Chapter heading 6303. This classification is directly reinforced by the decision in Order-in- Appeal No.CC(A)CUS/ICD/PPG/928/2022-23, passed by the Office of the Commissioner of Customs (Appeals) in a factually identical case involving the same importer. In that case, the goods were initially self-assessed under CTH 6303 92 00, but were later reclassified by the assessing authority under CTH 5407 63 00, based on laboratory ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ry, discriminatory, and violative of both statutory classification principles and the Constitutional mandate of equal treatment under Article 14. 19. The learned counsel places reliance on the following case laws 1. Commissioner of Customs (Import) (ICD TKD), New Delhi Vs. Shri Dinesh Lohia [2018 SCC OnLine CESTAT 3299] "16 After going through the impugned order, we find that the ld. Adjudicating authority has very clearly and precisely held that the 'subject goods' fall under chapter heading 63039200 and not under 54077200 as claimed by the Department. In the adjudication order ld. Adjudicating Authority has taken support from HSN and European Commission, Customs Code Committee, Section Notes and Chapter Notes to classify the product under 63039200. In the Appeal Memorandum, Revenue has taken only ground that since the imported goods are in Roll form and hence not 'made up' to be classified under Chapter 63039200. This aspect has been examined in the impugned order at para 34.4, 34.5 and 34.6 (supra). In this case, the importer has imported the fabrics which is suitable for use as curtain blends only. The CTH Heading 5404 of Customs Tariff is f....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... same definition extends to throughout the schedule when used in relation to 'textile materials." 5. M/s. Juniper Networks Solution India Pvt. Ltd vs. The Principal Commissioner Of Customs [Customs Appeal No. 20415 of 2024, dated 20.12.2024] "7. We also find that the department has not filed any appeal against the order passed by learned Commissioner (Appeals), Hyderabad and whereas no appeal has been filed against the order passed by Commissioner (Appeals), Mumbai. We find that it is not open that the Department to take a different stand on the same issue in Mumbai and Hyderabad. Such a differential classification of the impugned goods imported at different places would negate the very purpose of the Tariff Act on the one hand and would cause avoidable litigation for the importers on the other hand. We find that the findings given by the ld. Commissioner (Appeals) vide the order cited above are quite elaborate and reasoned which were followed by the learned Commissioner (Appeals), Mumbai in the impugned order. Therefore, we find that no case has been made out by the Department against the impugned orders and accordingly, we find that the impugned orders do no....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sinterprets "minor operations." The imported fabric lacks essential features of finished blinds (e.g., frilled edges, fixtures) hence General Rule 2(a) for incomplete articles is inapplicable. As regards natural justice and procedural compliance, the appellant was granted a personal hearing, retesting opportunities, and a corrigendum was issued. 21. The learned Authorised Representative (AR) with regard to the imposition of fines and penalties submits that; confiscation is justified under section 111(m) for the misdeclaration and the redemption fine imposed of Rs. 10,000/- is proportional to the value of the goods of Rs. 1,65,000/- and the penalty imposed on the appellant of Rs. 5000/- is minimal considering the duty evasion of Rs. 35,452/-. 22. Heard both sides, perused the records and the submissions of the learned counsel and learned Authorised Representative (AR) for the Revenue. 23. The issue involved in the present case is with respect to the classification of the goods imported vide 2 (two) Bills of Entry no. 109823 dated 04.10.2019 and 109443 dated 04.09.2019 declared as "Polyester Roller Window Blinds Fabric ready for use and "Polyester Fabric for Ready Goods 118"....