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2019 (10) TMI 458 - AT - CustomsDuty Drawback - classification of goods in the drawback schedule - export of goods - PV Suitings along with woven fabrics of synthetic staple fibre containing 85% or more by weight of synthetic staple fibre - whether the goods exported by the appellant will fall under Sl No 551202A of the Drawback Schedule or under 551502A? HELD THAT:- From the plain reading of the two entries, it is quite evident that for the goods to fall under heading No 551202A, they should contain by weight 85% or more of synthetic staple fibres, and for classification under 551502A they should contain 85% or more of manmade staple fibre. Chapter Note 1 to Chapter 54 of the Schedule to Customs Tariff Act, 1975 - the manmade fibres include both artificial and synthetic fibres. However for the classification purpose distinction has been made “artificial fibres” and “synthetic fibres”. Hence the above referred entries of Drawback Schedule when use the phrases “synthetic staple fibre” and “manmade fibre”, they definitely refer to the distinction between the synthetic and artificial fibres. Confiscation - redemption fine - HELD THAT:- Since the goods have been held liable for confiscation under Section 113(h)(i) of the Customs Act, 1962, penalty under Section 114 of the Customs Act, 1962 is justifiable. From plain reading of the section 114 reproduced below, it is evident that penalty under the said section is impossible in respect of the goods held liable for confiscation and it has nothing to do with the actual confiscation of the goods. The goods have been misdeclared by describing them in a manner to avail excess drawback, the goods were liable for confiscation and hence the appellants who were responsible for making such incorrect declaration liable to penalty. Confiscation and redemption fine set aside - other parts upheld - appeal allowed in part.
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