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2019 (3) TMI 524 - AT - CustomsClassification of imported goods - Kapok - While appellants claimed the classification under chapter 52, show cause notice was issued classifying the same under chapter 53, However on appeal Commissioner (Appeal) held that the said goods would classified under Chapter 14 - whether classified under Chapter Heading 1404 or otherwise? - Held that:- As per the rules of interpretation of tariff, classification of the goods has to be decided on the basis of terms of Chapter Headings and Sub-headings & relevant Section Note and Chapter Notes. Further it has been held in various judicial pronouncements that the product should be classified as per the market and trade under-standing of the goods. In the present case the goods have been imported by the appellants for being supplied to Ministry of Defence and not for sale in local market. These goods have been supplied as “Cotton” to the Ministry Of Defence. Even the overseas supplier has also clarified that the goods supplied by them were “Kapok Fiber (Java Kapok) was prime grade and super fine quality but not carded or combed.” Commissioner has upheld the classification of the imported goods under heading 1404, by totally ignoring the chapter note 1 to Chapter 14. From the said Chapter Note, it is quite evident that “vegetable materials or fibres of vegetable materials of a kind used primarily in the manufacture of textiles”, get classified in Section XI. Commissioner (Appeal) has in his order not rendered any finding to this effect that the goods under importation were other than of a kind used primarily in the manufacture of textiles. It is quite evident that adjudicating authority has classified the goods considering them of a kind used primarily in the manufacture of textiles. Commissioner (Appeal) has not rendered any finding in this regards, but on the contrary held that goods are classifiable under heading 1404, after holding that “Kapok Fibres prepared for use as textile material are classifiable in heading 5305” - Thus Commissioner (Appeal) was required to render a finding in this regards whether the imported goods namely “Kapok” was of a kind used primarily in the manufacture of textiles - the order of Commissioner (Appeal) without rendering such a finding cannot be sustained. The matter needs to be remitted back to Commissioner (Appeal) for determining the correct classification of goods as claimed by the Appellants or as adjudged by the adjudicating authority - appeal allowed by way of remand.
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