Case Law Details
Anjana International Industries Vs Pr. Commissioner, Customs- (Import) (CESTAT Delhi)
1. These appeals have been filed by M/s Anjana International Industries against to change of classification of the goods imported by the appellant.
2. The appellant had imported Paddle of canoes. The goods are manufactured out of carbon fibres with wooden handle. The appellant sought to classify the goods under the heading 95062900. These are two appeals before us. In one impugned order the Revenue has classified the goods under the heading 89039910 and as parts of canoes and in the order impugned order in second appeal the goods have been classified as paddles for canoes under the heading 68151090. The respective headings reads as follows:
CHAPTER 9506
9506- ARTICLES AND EQUIPMENT FOR GENERAL PHYSICAL EXERCISE, GYMNASTICS, ATHLETICS, OTEHR SPORTS (INCLUDING TABLE-TENNIS) OR OUT-DOOR GAMES, NOT SPECIFIED OR INCLUDED ELSEWHERE IN THIS CHAPTER; SWIMMING POOLS AND PADDLING POOLS
9506 11 00-Skis
9506 12 00-Ski-fastening (ski-binding)
9506 19 00-Others
Water-skis, surf boats, sailboards and other water-sports equipment
9506 21 00- Sailboards
9506 29 00-Other
CHAPTER 8903
8903 – YACHTS AND OTHER VESSLES FOR PLEASURE OR SPORTS:ROWING BOATS AND CANOES
8903 1010-Inflatable
-Others
89039100– Sail boats, with or without auxiliary motors
89039200-Motorboats, other than outboard motorboats
890399 – Others
89039910– Canoes
89039990– Others
CHAPTER 6815
6815-ARTICLES OF STONE OR OF OTEHR MINERAL SUBSTANCES (INCLUDING CARBON FIBRES, ARTICLES OF CARBON FIBRES AND ARTICLES OF PEAT,), NOT ELSEWHERE SPECIFIED OR INCLUDED
6815 90– Other
2.1 Learned counsel for the appellant argues that even revenue is not certain as to what is the correct classification of the goods. He pointed out that goods are rightly classified under 95062900. He pointed out that Chapter Note 1(p) of Chapter 95 reads as under;
“Chapter 95-Toys, games and sports requisites; parts and accessories thereof
1. This chapter does not cover:
(p) sports craft such as canoes and skiffs (Chapter 89), or their means of propulsion (Chapter 44 for such articles made of wood);”
He pointed out only the paddles made of wood are excluded from Chapter 9506. He pointed out that since the goods are made of carbon fibre and the same are classifiable under 9506.
2.2 He also pointed out that Chapter Note 1(p) of Chapter 6815 excludes articles of Chapter 9506 from Chapter 6815. He pointed out that combined reading of Chapter Note 1(p) of Chapter 95 and Chapter Note 1(l) of Chapter 68 clearly shows that the goods should be classifiable under Chapter 95. He further pointed out that there is no entry for parts in Chapter 8903 and, therefore, the classification of Chapter 8903 has to be completely ruled out.
2.3 He further pointed out that in Customs Appeal No. 51079 of 2020 the goods have been confiscated and redemption fine as well as penalty have been imposed. He pointed out that the matter related to classification and even revenue is not sure of the correct classification. The Revenue has sought the classification of the same under Chapter 68 as well as Chapter 95. In these circumstances the imposition of penalty or confiscation is not warranted.
3. Learned authorised representative pointed out that HSN Explanatory Notes in Chapter 89 prescribes as follows:
CHAPTER 89
“Ships, boats and floating structure
Contrary to the provisions relating to the transport equipment falling in other Chapter of Section XVII, this Chapter excludes all separately presented parts (other than hulls) and accessories of vessels of floating structures, even if they are clearly identifiable as such. Such parts and accessories are classified in the appropriate headings elsewhere in the Nomenclature, for example:
(1) The parts and accessories specified in Note 2 to Section XVII
(2) Wooden oars and paddles (heading 44.21)
(3) Ropes and cables of textile material (heading 56.07)
(4) Sails (heading 63.06)
(5) Mars, hatchways, gangways, rails and bulkheads for ships or boats and parts of hulls, having the character of metal structure of heading 73.08.
(6) Cables of iron and steel (heading 73.12)
(7) Anchors of iron and steel (heading 73.16)
(8) Propellers and paddle-wheels (heading 84.87)
(9) Rudders (heading 44.21, 73.25, 73.26, etc) and other steering or rudder equipment for ships or boats (heading 84.79)”
He pointed out that the list given in the said description in the HSN Notes is by way of examples and not a complete list. He pointed out that it clearly prescribes that the parts of ships, boards and floating structures which are made of wood would be classifiable under Chapter 44. The parts made of rope and cables made of textile materials would go under Chapter 56. The parts made of iron steel would go under Chapter 73 and so on. He pointed out that the goods imported by the appellant are excluded from Chapter 95 in terms of Chapter Note 1 (p) which reads as under;
“Chapter 95-Toys, games and sports requisites; parts and accessories thereof
1. This chapter does not cover:
(p) sports craft such as canoes and skiffs (Chapter 89), or their means of propulsion (Chapter 44 for such articles made of wood);”
He pointed out that Chapter 44 recommended for means of propulsions made of wood is just by example. He pointed out that the Note 1(p) excludes all means of propulsions from Chapter 95. He pointed out that the means of propulsions that is paddles in the instant case made of carbon fibre which is classifiable under Chapter 68 as proposed in the Customs Appeal No. 51051 of 2020.
4. We have considered the rival submissions. We find that the appellant have imported paddles of canoes made of carbon fibres. Canoes are classifiable under heading 89039910. The HSN Explanatory Notes to Chapter 8903 prescribes as follows:
CHAPTER 89
“Ships, boats and floating structure
Contrary to the provisions relating to the transport equipment falling in other Chapter of Section XVII, this Chapter excludes all separately presented parts (other than hulls) and accessories of vessels of floating structures, even if they are clearly identifiable as such. Such parts and accessories are classified in the appropriate headings elsewhere in the Nomenclature, for example:
(1) The parts and accessories specified in Note 2 to Section XVII.
(2) Wooden oars and paddles (heading 44.21).
(3) Ropes and cables of textile material (heading 56.07).
(4) Sails (heading 63.06).
(5) Mars, hatchways, gangways, rails and bulkheads for ships or boats and parts of hulls, having the character of metal structure of heading 73.08.
(6) Cables of iron and steel (heading 73.12)
(7) Anchors of iron and steel (heading 73.16)
(8) Propellers and paddle-wheels (heading 84.87)
(9) Rudders (heading 44.21, 73.25, 73.26, etc) and other steering or rudder equipment for ships or boats (heading 84.79)”
It is seen that parts and accessories (except hulls) are not classifiable under Chapter 89. In this background the classification of paddles, which are part of canoe and also its means of proposition, under Chapter 89 is ruled out. Revenue has classified the same under Chapter 89 in Customs Appeal No. 50179 of 2020. The said order classifying the goods under Chapter Heading 89039990 cannot be sustained in view of aforesaid chapter note. Therefore, the order impugned in Customs Appeal No. 50179 of 2020 is set aside. The appeal in so far as it seeks classification under head 95062900 is not allowed for the reasons given in para below.
5. In Customs Appeal No. 51051 of 2020, the goods are sought to be classified under Chapter Heading 6815 1090 by the Revenue. In appeal the goods are sought to be classified under Chapter Heading 9506 2900. For the reasons given in para above the classification under chapter 95 is ruled out. Chapter Note 1(l) of Chapter 68 reads as follows:
Chapter 68
(1) This Chapter does not cover:
(l) articles of Chapter 95 (for example, toys, games and sports requisites);
6. It is seen that the said Chapter note excludes „toys, games and sports requisites‟ from Chapter 68. In the instant case the goods imported are paddles of canoes made of carbon fibres. The “Chapter Note” 1(p) of Chapter 95 and Chapter Note 1(p) of Chapter 44 reads as under;
Chapter 95
Toys, games and sports requisites; parts and accessories thereof
1. This chapter does not cover;
(q) sports craft such as canoes and skiffs (Chapter 89), or their means of propulsion (Chapter 44 for such articles made of wood);
Chapter 44
Wood and articles of wood; wood charcoal
1. This Chapter does not cover:
(p) articles of Chapter 95(for example, toys, games, sports requisites);
Chapter note 1(p) of Chapter 95 excludes means of propulsion from Chapter 95 and puts it in chapter 44, if they are made of wood. Chapter Note 1(p) to Chapter 44 excludes „toys, games, sports requisites‟ from chapter 44 and places them in chapter 95.
Combined reading of Chapter 1(p) of Chapter 95 and 1(p) of Chapter 44 clearly implies that “means of propulsions” of sports crafts such as “canoes and skiffs” would be excluded from Chapter 95 and would fall under the Chapter relevant to the material of which the same are made of. It also becomes apparent that the “paddles” (means of propulsion) do not get covered by the description “toys, games and sports requisites” appearing in above mentions Chapter Notes. In the above background we hold that the goods are correctly classifiable under Chapter Heading 68151090. The Customs Appeal No. 51051 of 2020 is dismissed. The appeals are disposed of in above terms.
[Order pronounced on 03.05.2023]
