Inox Decor Pvt. Ltd. Vs Principal Commissioner of Customs (CESTAT Delhi)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, allowed the appeal filed by Inox Decor Pvt. Ltd. and set aside the order of the Principal Commissioner of Customs that had reclassified various imported modular kitchen and household products under Customs Tariff Heading (CTH) 9403 as parts of furniture. The dispute concerned products such as bottle racks, plate racks with drip trays, carousel units, basket systems, cutlery baskets, shoe racks, tie racks, trouser racks, drawer systems, holders, shelves, and other kitchen and wardrobe accessories imported under 32 Bills of Entry. The appellant had classified these goods under CTH 7323, CTH 8302, and other specific tariff entries, whereas the department treated them as parts of furniture classifiable under CTH 9403 90 00.
The appellant contended that the imported products were articles of base metal used in kitchens and households, or fittings and mountings suitable for furniture, and had been consistently classified under Chapters 73 and 83 for many years without objection from the department. The appellant also pointed out that the dispute arose after the customs duty rate under CTH 9403 increased from 10% to 20% in February 2018. It was further submitted that similar goods continued to be imported and classified by other importers under Chapter 73 and that the products were known in trade parlance as kitchen fittings and household accessories.
