Goods cannot be classified based on content of  Material used to Manufacture, Bra Cups are part of Brassiers: CESTAT upholds Classification [Read Order]

The Bangalore bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) has held that Goods cannot be classified based on the content of the material used to manufacture and Bra Cups are part of Brassiers.

M/s. Lovable Lingerie Ltd, the appellant challenged the issue of the classification of the goods ‘Bra Cups’ imported by the appellant during the period from 25.02.2010 to 14.07.2010. The appellant claimed classification under CTH 3926 of the Customs Tariff Act, 1975 as against the classification by the Revenue in the impugned order under CTH 6212.

The goods were examined and finally assessed and therefore, the question of reopening the classification does not arise. Regarding Classification, it is submitted that the burden of proof lies on the Revenue to prove that the goods are rightly classifiable under 6212 and not under 3926.

The issue is regarding the classification of the imported goods. The heading covers articles, Note 1 to the Chapter ) or elsewhere specified or included, of plastics ( as defined in other materials of headings 39.01 to 39.14 )

Articles of apparel and clothing accessories ( other than toys ) made by sewing or sealing sheets of plastics, e.g., aprons, belts, babies' bibs, raincoats, dress-shields, etc. Detachable plastic hoods remain classified in this heading if presented with the plastic raincoats to which they belong.

This heading covers articles of a kind designed for wear as body-supporting garments or as supports for certain other articles of apparel, and parts thereof These articles may be made of any textile material including knitted or crocheted fabrics ( whether or not elastic ).

A two-member bench of Mr P A Augustian, Member ( Judicial ) and Mrs R Bhagya Devi, Member ( Technical ) observed that the bra cups are to be classified under 6212. The only contention of the appellant is that since the chapter notes exclude woven, knitted or crocheted fabrics, felt or nonwovens, impregnated, or coated, as per clause (h) it should be classified under Chapter 39. The exclusion cannot be read in isolation without all other factors that describe the article. As seen from the General Interpretative Rules ( reproduced below ), the goods are to be classified as per the terms of the section notes and the Chapter notes.

Chapter 6212 includes Brassier and when there is a specific description, the goods cannot be classified based on the content of the material used to manufacture the same. The Interpretative Rules reproduced below as seen under clause 2(a) the essential character of the product decides the classification and here the bra cups undoubtedly are used as part of a Brassier and the impugned products are more akin to the description given under 6212 and therefore rightly classifiable under 6212 90 as per clause 4 of the Interpretative Rules.

The unit price for the pair should be taken as per unit price ( set of 2 pieces ) rather than artificially splitting the price per piece. Section 19 of the Customs Act takes cognisance of articles imported in sets and therefore we find the said goods which are in pairs should be considered as a unit and the rate of duty to be calculated accordingly. 

The CESTAT uphold the classification of the imported goods under CTH 6212 and consequently, the impugned order is upheld as far as classification is concerned and the appeal is remanded to the adjudicating authority to recalculate the duty taking into consideration the unit price for pairs as a single unit price. 

 The appeal is disposed of by way of remand.

To Read the full text of the Order CLICK HERE

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