CHANDRA IMPEX Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The appellants imported 192 bales (34,319 metres) of fabric and filed Bill of Entry dated 2941 -2000 at CFS, Ludhiana for clearance thereof, declaring the goods as 100% polyester warp knitted fabric falling under sub -heading 6002.43 of the First Schedule to the Customs Tariff Act. The declared CIF value of the goods was US 0.65 per metre on the basis of invoice dated 2 -11 -2000 issued by the foreign supplier, namely, M/s. ACE Trading, Dubai (UAE). The goods were examined by the DRI staff on 8 -12 -2000 and two representative samples were drawn from bale Nos. 96 and 185. The Chemical Examiner's report on the test samples read thus : -

(2.) The importer contested this test report by producing a report from the Textile Commissioner, Ministry of Textiles, Government of India, which certified the goods to be "warp knitted polyester fabric giving the cord effect (running longitudinally) on the surface and not a pile fabric". However, the Department exclusively relied on the Chemical Examiner's report and held the goods to be classifiable as knitted looped pile fabric under sub -heading 6001.22 of the CTA Schedule. They also held that the importer had misdeclared the goods rendering them liable to confiscation under Section 111 of the Customs Act. The goods were accordingly seized under Section 110 of the Act but, on the request of the importer, provisionally released, subject to certain conditions.

(3.) Goods falling under SH 6001.22 were restricted for import as per Exim Code 60012200 of ITC (HS) Classification of Import and Export Items 1997 -2002 and could be imported only under specific licence. Such goods also attracted basic customs duty at the rate of 35% ad valorem. On the other hand, goods classifiable under sub -heading 6002.43 of the CTA Schedule were in the OGL category and hence freely importable. These goods attracted basic customs duty at the rate of 30% ad valorem.