VARDHMAN ACRYLICS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) In the impugned order the Id. Commissioner (Appeals) held : "I have carefully gone through the records of the case and considered submissions made by the appellants. I find that it is not in dispute that what has been imported is 100% cotton cloth bleached plain weave. During the course of personal hearing, I had also seen the sample and I agree with the findings of the lower authority that the impugned goods being made of cotton and these are 100% cotton fabrics, bleached correctly classifiable under Heading 52.08. I also observe from the findings of the lower authority that the goods are in running length and are not even cut to any specific size and shape. I, accordingly, have no hesitation to hold that the impugned goods would fall under Exim Code 5208. 1 also observe that the lower authority has correctly held that by virtue of Note 7 to Chapter 59, the subject goods are excluded from the classification under Heading 59.11 of Customs Tariff firstly, because these goods are specifically falling under Heading 5208 of Section XI, and secondly, because these are in running length and not in the form cut to length or simply cut to rectangular shape. In consideration of above, I do not find any reason io interfere with the order of the lower authority. Accordingly, I find no merit in the appeal. The appeal is, therefore, rejected."

(2.) The facts of the case briefly stated are that the appellants imported certain goods describing them in the Bill of Entry as 100% cotton cloth bleached and claimed customs classification under Chapter Heading 5208.20. In the invoice also the description of the goods was given as 100% cotton cloth bleached plain weave type 5 -618 (Calico) and 2023BL (Rough). The authorities below classified the goods under Chapter Heading 5208.00 and since the goods required a licence, they were confiscated and allowed to be redeemed on payment of fine to Rs. one lakh in addition the penalty of Rs. 25,000/ - was also imposed. The appellants wanted classification of the goods under Chapter Heading 59.11 and stated that no licence was required.

(3.) Arguing the case for the appellant Shri Balbir Singh, Id. Counsel submits that the appellants imported the goods declared them 100% cotton bleached plain weave fabrics and claiming classification thereof under Chapter sub -heading 5911.90. He submits that the goods under import were specifically manufactured for use in filtration of polymer. He submits that this was a specific product for a specific use. He submits that the product was examined by experts who also held that it was a specific product meant for filtration of polymer and was not ordinary cotton cloth. Ld. Counsel submits that Note 8 of Section 11 provides (a) Chapters 50 to 55 and 60 and, except where the context otherwise requires Chapters 56 to 59 do not apply to goods made -up within the meaning of Note 7 above and that after Chapters 50 to 55 and 60 do not apply to goods of Chapters 56 to 59 and 60 do not apply to goods of Chapters 56 to 59. He submits that in terms of this Section Note, the goods imported by them are not covered under Chapters 50 to 55 and 60. He submits that Note 7 of Chapter 59 under sub -para (iv) provides: "Flat woven textile fabrics with multiple warp or weft, whether or not felted, impregnated or coated of a kind used in machinery or for other technical purposes".