TaxTMI 
TaxTMI 
2026 (5) TMI 931
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....d, supported or similarly combined with other materials. The Basic Customs Duty (BCD) was paid at the rate of 10%, Social Welfare Surcharge (SWS) on BCD at the rate of 10% and IGST was paid at the rate of 18%. On perusal of the import invoices issued by the supplier M/s. DSM Protective Materials BV, Netherlands uploaded on e-sanchit in respect of all the said Bills of Entry, it was found that the product name mentioned therein is 'HB26 A' and the commodity code is mentioned as 540730 which covers woven fabrics of synthetic filament yarn. The effective rate of BCD on the goods classifiable under sub-heading 540730 is 20%, SWS on BCD is payable at the rate of 10%. With these observations, the department at the stage of post clearance audit of the Bills of Entry filed by the appellant, alleged that the appellant has short paid the duty on the imported goods while wrongly classifying the imported goods. Accordingly, vide Demand Cum Show Cause Notice No. 66/2021-22 dated 24.08.2021, it was proposed that the imported goods may be classified under CTH 540730 instead of declared CTH 39201099 having the assessable value of Rs. 10,42,68,575/-. In view of the mis-declaration the goods....
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....) and strip of plastics of an apparent width not exceeding 5mm which are covered under Chapter 54. The Notes specifically excludes textiles and textile articles. General Explanatory notes to the respective chapters are impressed upon and while relying upon the general rules for interpretation of the harmonized system, it is submitted that the classification of goods in the nomenclature has to be governed in accordance of the titles of the Sections, chapters and the sub-chapters are provided for the ease of reference only. The decision of the Hon'ble Apex Court in the case of Collector of Central Excise, Shillong Vs. Wood Craft Ltd. Reported as 1995 (77) ELT 23 (SC) has been relied upon. It is submitted that the impugned goods are rightly held classifiable under 540730. The BCD at the rate of 20% was to be paid. Hence the short paid duty has rightly been demanded. For the same reason there is no infirmity in the order while confiscation of imported goods is ordered and penalty has been imposed. With these submissions, the appeal is prayed to be dismissed. 5. Having heard both the parties and perusing the entire records, It is observed and held as follows: 5.1 The issue her....
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.... (y) xxxxxxxxxxxxxx (z) xxxxxxxxxxxxxx CHAPTER 54 Man-made filaments and textile material thereof Tariff item Description of goods Unit Rate of duty Standard Preferential Areas (1) (2) (3) (4) (5) 5407 Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials or heading 5404 540730 - Fabrics specified in Note 9 to Section XI: 1. Throughout this Schedule, the term 'man-made fibres' means staple fibres and filaments of organic polymers produced by manufacturing processes either: (a) by polymerization of organic monomers to produce polymers such as polyamides, polyesters, 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) and other proteins, or algnic acid), to produce polymers such as cellulose acetate or alginates. T....
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....s of regular geometric shape, whether or not printed or otherwise surface worked (for example, polished, embossed, coloured, merely curved or corrugated), uncut or cut rectangles (including squares) but not further worked (even if when so cut they become articles ready for use, for example, tablecloths). Plats, sheets, etc., whether or not surface worked (including squares and other rectangles cut therefrom), with ground edges, drilled, milled, hemmed, twisted, framed or otherwise worked or cut into shapes other than rectangular (including square)are generally classified as articles of headings 39.18, 39.19 or 39.22 to 39.26. Relevant Chapter Notes of Chapter 54 is also perused as: Throughout the Nomenclate, the terms "man made fibres" means staple fibres and filaments of organic polymers produced by manufacturing processes, either: (a) By polymerization of organic monomers, such as polyamides, polyesters, polyurethanes or polyvinyl derivatives; or (b) By chemical transformation of natural organic polymers (for example, cellulose, casein, proteins or algae), such as viscose rayon, cellulose acetate, cupro or alginates. The terms "synthetic" and "artificial", us....
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....201099 has rightly been arrived at. Based thereupon the order demanding differential duty of Rs. 1,14,69,543/- is hereby upheld. 7. Insofar as holding the imported goods liable to confiscation under section 111(m) of the Customs Act and consequently imposition of fine of Rs. 2,00,000/- on the appellant are concerned, we have perused section 111(m) which reads as follows: Section 111. Confiscation of improperly imported goods, etc.- The following goods brought from a place outside India shall be liable to confiscation: - xxxxx (m) any goods which do not correspond in respect of value or in any other particular with the entry made under this Act or in the case of baggage with the declaration made under section 77 in respect thereof, or in the case of goods under trans-shipment, with the declaration for trans-shipment referred to in the proviso to sub-section (1) of section 54 ; 8. There is no dispute that the imported goods corresponded to the goods described in the Bills of Entry. The only dispute was regarding their classification. Classification of goods under the Customs Tariff is a part of the assessment. It is a matter of opinion of the person w....