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TMI Blog2011 (6) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... at M/s. Kejriwal Exports, Mumbai exported 12360 pairs of Ladies leather sandals vide Drawback Shipping No. 4120088 dated 7-3-2006, FOB Rs. 4,03,738.48 and Drawback Sr. No. 640311A-7.5%. During examination, the Docks staff found the goods to be not fitting the description of "Sandals" but were found to be chappals. The samples were drawn and after examination the goods were found fitting in description of leather chappals at Sr. No. 640301A-4.7% and hence the shipment was allowed provisionally. Finally the case was adjudicated for entitlement of DBK S.No. 640313 @ 1% only. 3. Being aggrieved by the said Order-in-Original, applicant filed appeal before Commissioner (Appeal) who rejected the same. 4. Being aggrieved by the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Department that the goods in question were not "chappals" but "sandals" supplied technical literature to justify their claim for classification as "Leather Sandals". However, after examining the samples of the goods in question, the Department was of the view that the export consignment indeed consisted of sandals. Accordingly, the Assistant Commissioner held that the goods in question were "sandals" but not "chappals". However, the Assistant Commissioner further went on to hold that the goods in question were not leather sandals as they have attached wooden heels and thus, has rejected the Drawback claim of the Applicants under Sl. No. 640311 and adopted an altogether new classification under DBK Sl. No. 640313 at Drawback rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner (Appeals) that the exported sandals should merit classification under Tariff Item 640399.90 is untenable and should be set aside because there is no dispute that export goods are nothing but leather sandals with rubber sole. 4.5 In order to identify the constituent element of upper or outer sole of footwear, regard must be given to the criteria mentioned in Note 4 of Chapter 64 that the correct classification of the exported goods is Tariff Item 640399.10 which covers "Leather Sandals with Rubber Sole". Thus, an item will be classified under Tariff Item 640399.10 if the sole of such footwear is made up of rubber and the rest of the footwear is of leather. 4.6 Therefore, in terms of Note 4 of Chapter 64 the exported sandals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) if full with consequential relief's. 5. Personal hearing was scheduled in this case on 12-5-2011 and 13-5-2011. Shri Ravi Raghvan and Shri Ganesh Bapu, Advocates attended hearing on 13-5-2011 on behalf of the applicant who reiterated the facts/grounds of revision application. 6. Government has carefully gone through the relevant case records and perused the impugned Order-in-Original and Order-in-Appeal. 7. Government notes that there being no dispute to the facts/figures of impugned exports, the claimed Drawback was initially allowed as provisionally due to objection that export goods were chapels and not sandals. But later on after examination of samples, photographs and report of council of Leather Exports, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vernment finds force in the submitted grounds of the Applicant that the applicable Drawback Schedule is an independent piece of legislation and other (provisions) of Customs Act, 1962 including Customs Tariff can be of "guiding factor" role but cannot form the sole basis of deciding the impugned classification. Government therefore after taking into consideration the simple and plain reading of the applicable Drawback schedule along with the fact of basic constituent material (i.e. leather), categorization as per council of leather exports, C.B.E. & C. Circular No. 08/2002-Cus., dated 30-1-2002 and facts of maximum coverage/contact areas etc. is of considered opinion that any (additional) re-enforcements, attachment, accessories and compone ..... X X X X Extracts X X X X X X X X Extracts X X X X
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