2023 (5) TMI 939 - AT - Customs

Classification of imported goods - Inflatable Party Items - to be classified under 39269099 of the Customs Tariff Act 1975 or under CTH 9503? - Confiscation - redemption fine - penalty - HELD THAT - The adjudicating authority while classifying the impugned goods i.e. Inflatable Party decoration inflatable item i.e. decoration foil balloon held that the same is classified under CTH 9503 in terms of the report issued by NCTC dated 29.10.2021 - he report contains that the impugned goods are party decoration inflatable item but classified under CTH 9503 instead of declared CTH 3926 and held attract BIS Registration. The said report is inconclusive as no detailed analysis has been placed on record. Further we find that the respondent sought clarification on the import of Inflatable Party decoration inflatable item from the Ministry of Commerce and Industry Government of India and a clarification was received from the Department of Promotion of Industry and Internal Trade Ministry of Commerce and Industry Government of India vide F.No.14031/47/2020-CI dated 24.02.2022. As per the Government of India clarification it is clear that the Indian Standard IS Registration i.e. any product or material designed or clearly intended for use in play by children under 14 years of age includes requirements for safety of toy balloons as well. These requirements include the possible choking hazards presented by pieces of broken latex ballons or by mouthpieces fitted to balloons - Further it was held that the impugned goods imported by the respondent are not covered under Toy Quality Control Order 2020. As it is clarified that the impugned goods are out of preview of BIS Registration by Ministry of Commerce and Industry Govt. of India in that circumstances it was held that the items in question are not in the scope of BIS Standard and the report sought from NCTC by the Revenue is without any basis. The appellants are not required for any BIS Registration for import of the impugned goods i.e. INFLATABLE PARTY ITEM (INPAC) - there are no infirmity in the impugned orders and the same are upheld - appeal of Revenue dismissed.

Summary

Issues involved: Classification of imported goods under Customs Tariff Act, requirement of BIS Registration, conflicting reports from different departments.

Summary:
The appeals before the Appellate Tribunal CESTAT Kolkata involved the classification of Inflatable Party Items imported by the respondents under the Customs Tariff Act, 1975. The goods were initially classified under 39269099, but upon examination, it was found that they should be classified under CTH 9503, requiring BIS Registration. The impugned goods were held liable for confiscation and penalties. The order was challenged before the Commissioner (Appeals), who classified the goods under CTH 9505, stating that BIS Registration was not required. The Revenue appealed this decision.

Upon hearing the parties and examining the submissions and records, the Tribunal noted the conflicting reports. The adjudicating authority classified the goods under CTH 9503 based on a report from NCTC, while a clarification from the Department of Promotion of Industry and Internal Trade classified the goods under CTH 9505, stating that BIS Registration was not necessary. The Tribunal found the NCTC report inconclusive and highlighted the clarification received from the Government of India regarding the scope of BIS Registration for such goods.

Based on the clarification from the Ministry of Commerce and Industry, the Tribunal held that the impugned goods were not subject to BIS Registration requirements. It was clarified that the items in question were not within the scope of BIS Standard, and the report from NCTC was deemed baseless. Consequently, the Tribunal ruled that the appellants were not required to obtain BIS Registration for the import of the Inflatable Party Items. The impugned orders were upheld, and the appeals filed by the Revenue were dismissed.