Balloons used for Decorations not required to satisfy BIS Registration as they are not Toys: CESTAT quashes Confiscation Order [Read Order]

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) quashed confiscation order and noted that balloons used for decorations not required to satisfy BIS Registration as they are not toys.

After due process of law, the Original Authority ordered for confiscation of the goods valued at Rs.3,77,952/- with an option to the appellant to re-export these goods within 30 days of the order by payment of redemption fine of Rs.30,000/- under section 125 of Customs Act 1962 or order for the destruction of the same at the cost of the importer as per rules. A penalty of Rs.25,000/- was imposed under Section 112 (a) of the Customs Act 1962. Against such order, the appellant approached the Commissioner ( Appeals ) who upheld the same. Hence the appeal.

The Counsel for the appellant argued that that the balloons under import are only for party decorations and never meant for use in play by children. The shipment contains balloons of size 5 inches, 12 inches and 19 inches. These balloons are for the purpose of decoration only. The balloons of 5 inches are too small a size to be used by children and the 12 and 19 inches are too large and hence can be used for decoration purposes only. If at all, it can be said that 9- inch balloons are ideal for kids and the shipment doesn’t contain this item. In any case, the goods being imported are used only for party decorations and never sold for use as toys to children. Hence, these balloons in the consignment are meant for party decoration only and cannot be considered as Toys.

It was also contended that pursuant to the introduction of TQC Order, the CBIC has issued instruction No. 6/2023 dated 13.02.2023. In the said instruction, it is stated that to facilitate the verification, the BIS has made available the list of BIS licensees of domestic manufacturers and foreign suppliers in their Website and Mobile App and the flowchart to access details from the BIS website is provided. It is seen from the details available at the BIS website, none of the balloon manufacturers in India and suppliers abroad are registered/ licensed under the prescribed IS Numbers.

A Two-Member Bench of Vasa Seshagiri Rao, Technical Member and CS Sulekha Beevi, Judicial Member observed that “In the present case, the appellant has consistently from the very beginning contended that they are engaged in the business of decorations using balloons, and the goods ( balloons ) imported were intended to be used only for decoration. The department has not been able to establish otherwise. As per the list of items shown in the IS 9873 ( Part I ): 2012 item at (k) shows that holiday decorations that are primarily intended for ornamental purposes are excluded. Thus goods used for decoration is excluded. The said item at (k) does not make any distinction or differentiation based on the material used in for the balloon. Further, in the present case the appellant offered to test the goods as to the nature of the material used. The department did not conduct any test.”

To Read the full text of the Order CLICK HERE

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