Case Law Details
S. K. Enterprises Vs Commissioner of Customs (Prev.) (CESTAT Kolkata)
CESTAT Kolkata held that fabric containing both Cotton and polyester in the ratio of 79.2% and 16.8% respectively is rightly classifiable under the CTH 52113190 as Cotton Polyester fabric. Accordingly, demand of differential duty of customs set aside.
Facts- The Appellant imported the goods vide the said four Bills of Entry declaring the same as Cotton Polyester Fabrics classifiable under Customs Tariff Heading (CTH) 52113190. On examination, the department observed that the goods imported were Blue Coloured fabrics of ‘Denim’ classifiable under CTH 52114200. Based on the Test Report, DRI concluded that the imported goods are ‘Denim fabrics’ and merits classification under CTH 52114200. Accordingly, Show cause Notices were issued proposing for confiscation of the goods. In the Notices, the classifications of the goods were proposed to be changed from 52113190 to 52114200. Both the Notices were adjudicated and demands were confirmed.
Conclusion- From the Test Report that the sample fabrics contains Cotton yarn: 79.2%Polyester Yarns – 16,8% and rest 4% being elastomeric material. The CTH 52113190 deals with Cotton Polyester Fabric. As per the Test Report, The fabric contains both Cotton and polyester in the ratio of 79.2% and 16.8% respectively. Thus, we hold that, the fabric is rightly classifiable under the CTH 52113190 as Cotton Polyester fabric. Accordingly, we uphold the classification declared by the Appellant in the Bills of entry and reject the department’s reclassification of the fabric.
Held that since, the fabric is classifiable under the CTH 52113190, we hold that the demand of differential duty of customs in the impugned order, is not sustainable.
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