Date of order: 17.10.2022

Key Pointers:

• The Appellant, UTKARSH CHEMICALS, was importing goods namely Polyester Bed Covers. The Appellants filed bills of entry declaring the goods as 100% polyester bed cover under CTH 6304, the goods imported were examined by Revenue. After being examined by the officer of SIIB it was observed that the clothes material was of 3 pieces of clothes sheets roughly and unsymmetrically stitched on two sides, one side fold and one side open. 
• The committee reported on 06.06.2017 that the item is 100% Polyester and warp is textured yarn but the weft cannot be ascertained and expressed the opinion that 39.8% is textured yarn and the remaining 60.2% cannot be ascertained. 
• A Show Cause Notice dated 26.10.2017 was issued to the Appellant proposing the classification of the imported goods as “Polyester Woven Fabrics” under Chapter 54075490 of the Customs Tariff Act 1975 against the declaration as “Polyester Bed Cover” under CTH 63041990 and differential duty of customs apart from confiscation and imposition of penalty. The show cause notice was adjudicated vide impugned order dated 02.07.2018.
• The issue is whether the classification of goods declared by the appellant as Bed Cover and the revenue's claim is that imported goods is "polyester woven fabric” classifiable under CTH 54075490?
• The authorities held that “polyester woven fabric” under CTH 54075490 and to prove that the goods are polyester woven fabric has relied on three textile committee reports reproduced in the impugned order. By perusing the reports dated 28.02.2017 it is clearly mentioned in the column of correct description & Classification of the sample that an appropriate HS Code could not be provided due to rupture of yarn in weft while untwisting.
• The tribunal after relying on various judgements, held that the impugned order is not sustainable, hence the same is set aside. The appeal is accordingly allowed.