Lucky Goldstar Co. Limited Vs Commissioner of Customs (Airport & Admn.) (CESTAT Kolkata)
CESTAT Kolkata held that silk fabric with 85% or more silk excluding Noil Silk is classifiable under Customs Tariff Heading 5007 2090 and cannot be classified as Noil Silk Fabric under Customs Tariff Heading 5007 1000. Accordingly, re-classification of goods not sustainable.
Facts- The appellant, M/s. Lucky Goldstar Co. Ltd., has classified the impugned goods under the CTH 5007 2090 (Silk Fabrics with 85% or more silk, excluding Noil Silk), However, the lower authorities have classified the sad goods under the CTH 5007 1000 (Noil Silk Fabrics).
Conclusion- Held that the impugned goods would be classifiable under the CTH 5007 1000 only if they are made of fabrics of Noil Silk only i.e., 100% Noil Silk Yarn, as also admitted by the adjudicating authority under paragraph 21(i) of the Order-in-Original. It is evident from the Test report received from Central Silk Board, Kolkata that none of the fabrics attempted to be exported under the impugned consignment are made of 100% Noil fabrics ‘by weight’. In view of contradictory Test Reports as to percentage of yarn ‘by weight’, it cannot be presumed that the presence of Noil Silk by weight is ‘100%’ for the goods in question so as to warrant classification under CTH 5007 1000. Thus, we find that Test Reports available before us fail to conclusively establish the presence of 100% ‘Noil Silk Yarn’ in the impugned goods. Consequently, we hold that the re-classification of the impugned goods under the CTH 5007 1000, by the lower authorities, is not sustainable. We observe that the report of CSTRI, Bangalore has not indicated the weight of yarn in the fabric. As weight of the yarn is the primary criteria required for classification of the fabric, we find that the Test Report of CSTRI, Bangalore is not of much help. Consequently, on the basis of the Test Report received from Silk Board, we hold that the re-classification of the impugned goods under the CTH 5007 1000, by the lower authorities, is not sustainable.
