TaxTMI 
TaxTMI 
2026 (6) TMI 17
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....stem), Bottle Rack, Plate Rack with drip Tray, Corena White S-Carousel unit, Corena White S-Carousel unit, Corena White Soho unit W/12 Basket, Dress holder, Magic corner baskets, Cutlery Basket, Tie Rack, Dress hanger holder, Trouser rack, Swivel Shoe Rack, Satin Bowl/Plate Holder etc. 3. According to the appellant, these goods are essentially items of "base metal" used in the kitchen or household, hung or fixed in cabinets, drawers or walls. They were classified by the appellant under Customs Tariff Item [CTI] 7323 93 90, CTI 7323 99 90 and CTI 8302 49 00. 4. The department, however, believed that that products were parts of unit furniture, shelf furniture, chests and cupboards cabinet classifiable under CTI 9403 90 00. 5. The description of the items, the CTI claimed by the appellant and the CTI determined is contained in the following chart: S. No. Item Description Claimed CTI Determined CTI 1 Bottle Rack 7323 93 90 9403 90 00 2 Plate Rack with Drip Tray 7323 93 90 9403 90 00 3 Corena White S-Caraousel Unit (Left) Stainless Steel 7323 93 90 9403 90 00 4 Corena White Soho Unit W12 Basket 7323 93 90 9403 90 00 ....
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....mination of the goods. 7. However, on the basis of post clearance audit objection, the department issued a show cause notice to the appellant alleging mis-classification. 8. The appellant filed a detailed reply to the show cause notice and denied the allegations made therein. 9. The Principal Commissioner, however, by order dated 23.12.2020 confirmed the classification under CTI 9403 90 00 as proposed in the show cause notice. 10. The relevant portions of the order passed by the Principal Commissioner rejecting the classification of the products claimed by the appellant under Customs Tariff Heading 7323 and 8302 are reproduced below: "17. ***** On comparison of the description of above imported goods with the description of the items covered under CTH 7323, I find that these are altogether different category of items. While CTH 7323 covers items which are kitchenware, tableware etc. which are used in the kitchen or household and are not in the nature of goods which are hung or fixed in cabinets, drawers or wall, the above items imported in this case are in the nature of parts of furniture / shelved furniture i.e. chests, cupboards, cabinets etc. for modular fur....
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....e reads as under: "This section does not cover- (k) articles of Chapter 94 (for example furniture, mattress supports, lamps and lighting fittings etc.)" 20.2 I also find that as per explanatory notes under CTH 7323, the heading excludes "(k) Small hanging meat safes and other furniture of Chapter 94". 20.3 Further, I find that Chapter Note 2 to the Chapter 94 read as follows: "2. The articles (other than parts) referred to in headings 9401 to 9403 are to be classified in those headings only if they are designed for placing on the floor or ground. The following are, however, to be classified in the above mentioned headings even if they are designed to be hung, to be fixed to the wall or to stand one on the other: (a) Cupboards, bookcases, other shelved furniture (including single shelves presented with supports for fixing them to the wall) and unit furniture; (b) Seats and beds." 20.5 Thus, as per the explanatory notes under Chapter 94 as reproduced above, furniture includes cupboards, cabinets, chests, drawers, wardrobes, tables, beds etc. Cupboards, bookcases, other shelved furniture (including single....
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....ting the goods in question for the past many years and had claimed classification under CTH 7323/8302. At no stage, the department raised any dispute with regard to the classification; (ii) The rates of duty initially under CTH 7323, CTH 8302 and CTH 9403 was 10%. However, with effect from February, 2018, the rate of duty in respect of goods following under CTH 9403 was increased from 10% to 20% and it is then that objections were raised by the audit ignoring the fact that the classification of the goods had been affirmed by the respective proper officer after due scrutiny of documents and physical examination of goods; (iii) Though the audit department raised objection regarding classification of the goods imported by the appellant under 32 Bills of Entry, even today identical goods are being cleared as "articles of stainless steel" under Chapter 73 of the Customs Tariff; (iv) Even in the local trade, renowned brands in the market import identical products and sell the same in the domestic product under CTH 7323; (v) The Principal Commissioner committed an error in classifying the goods under CTI 9403 90 00. The goods are essentially baskets, hi....
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.... household utensils. They form a structural and functional part of fixed or modular furniture and thus are correctly classifiable under CTH 9403; (iv) The goods like drawer systems and baskets fixed within furniture are not kitchen utensils or tableware under CTH 7323. Nor are they accessory fittings for general-purpose under CTH 8302; (v) The goods are not merely "accessories" but functional parts of complete furniture units explicitly covered under CTH 9403; (vi) The decision of the Tribunal in Crystal Interior Products is not applicable to the products imported in the present case; and (vii) The duty demand under section 28(1) of the Customs Act is valid as the classification is not correct. 14. The submissions advanced by the learned counsel for the appellant and the learned authorized representative appearing for the department have been considered. 15. In order to appreciate the contentions, it will be appropriate to first reproduce the relevant Customs Tariffs. 16. Chapter 73 deals with articles of iron or steel and the relevant tariff items are reproduced below: CHAPTER 73 Articles of iron or steel Tariff Item ....
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..... 10% - 8302 30 - Other mountings, fittings and similar articles suitable for motor vehicles: 8302 30 10 --- Curve drive stakes kg. 10% - 8302 30 90 --- Other kg. 10% - - Other mountings, fittings and similar articles: 8302 41 -- Suitable for buildings: 8302 41 10 --- Fittings for doors and windows kg. 10% - 8302 41 20 --- Tower bolts kg. 10% - 8302 41 90 --- Other kg. 10% - 8302 42 00 -- Other, suitable for furniture kg. 10% - 8302 49 00 -- Other kg. 10% - 8302 50 00 - Hat-racks, hat-pegs, brackets and similar fixtures kg. 10% - 8302 60 00 - Automatic door closers kg. 10% - 18. Chapter 94, amongst others, deals with furniture and the relevant tariff items are reproduced below: CHAPTER 94 Furniture, bedding mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-p....
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....portion of HSN 73.23 is reproduced below: "(A) TABLE, KITCHEN OR OTHER HOUSEHOLD ARTICLES AND PARTS TEHREOF This group comprises a wide range of iron or steel articles, not more specifically covered by other headings of the Nomenclature, used for table, kitchen or other household purposes; it includes the same goods for use in hotels, restaurants, boarding-houses, hospitals, canteens, barracks, etc. These articles may be cast, or of iron or steel sheet, plate, hoop, strip, wire, wire grill, wire cloth, etc., and may be manufactured by any process (moulding, forging, punching, stamping, etc.). They may be fitted with lids, handles or other parts or accessories of other materials provided that they retain the character of iron or steel articles. The group includes: (1) Articles for kitchen use xxx xxx xxx (2) Articles for table use such as xxx xxx xxx (3) Other household articles such as wash coppers and boilers; dustbins, buckets, coal scuttles and hods; watering-cans; ash-trays; hot water bottles; bottle baskets; movable boot-scrapers; stands for flat irons, baskets for laundry, fruit, vegetables, etc: letter-boxes; clothes-h....
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....as 10%, but with effect from February 2018, the rate of duty in respect of goods falling under CTH 9403 was increased from 10% to 20% and it is then that objections were raised by the audit, though the proper officers after scrutiny of documents and physical examination of goods had given out of charge orders by treating the classification under CTH 7323/8302. 25. The appellant claims that renowned brands in the market are still importing identical products and selling the same in domestic market under Chapter 73 as articles of stainless steel. In this connection, details of the importer, the Chapter and description of goods have been enclosed, which do show that between January 2023 and July 2023 similar goods have been classified under Chapter 73. The appellant has also placed on record catalogues of various renowned brands in the market which show that the products have been classified under CTH 7323. 26. The Principal Commissioner has confirmed the demand under Chapter 94 by holding that the goods constitute parts of metal furniture of a kind used in offices by treating the goods as part of unit furniture, shelf furniture, chests and cupboards cabinets. The goods, on the ....
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....and also other household articles. Heading 7323 specifically covers kitchen or other household articles and as such, has to be preferred over chapter 94, which relates to furniture and part thereof. By no stretch of imagination, the kitchen and household articles can be considered as furniture items. Though there is no other evidence produced on record to show that the other goods are considered as kitchen article and household articles but we find that a mere look at the product catalogue makes it clear that items are considered to be kitchen and other household articles by a common person as rightly observed by the Commissioner (Appeals). The Revenue has not produced any evidence to show as to how the said goods can be considered as furniture or kitchen furniture so as to merit classification under Chapter 94. The revenue's claim is merely based upon assumption and presumption and we find that lower authorities have gone through the details of the Chapter 94, verification report by the Superintendent, the product catalogue and have rightly come to the conclusion that the goods in question cannot be held to be as furniture and have rightly been classified under Chapter 73. We ....