The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT)has held that paddles as part of a canoe cannot be classified under yachts and others for sports under Customs Tariff Act(CTA),1975.
M/s Anjana International Industries against to change of classification of the goods imported by the appellant. The appellant had imported a Paddle of canoes. The goods are manufactured out of carbon fibres with wooden handles. The appellant sought to classify the goods under the heading 95062900.
In one impugned order, the Revenue has classified the goods under the heading 89039910 and as parts of canoes and in the order impugned order in the second appeal the goods have been classified as paddles for canoes under the heading 68151090.
Chapter 95 of the Customs Tariff Act (CTA),1975.-Toys, games and sports requisites include parts and accessories thereof. This chapter does not cover sports crafts such as canoes and skiffs (Chapter 89), or their means of propulsion (Chapter 44 for such articles made of wood).
It was pointed out that only the paddles made of wood are excluded from Chapter 9506of the Customs Tariff Act(CTA),1975 and stated that since the goods are made of carbon fibre and the same are classifiable under 9506. Further stated that the combined reading of Chapter Note 1(p) of Chapter 95 of the Customs Tariff Act(CTA),1975and Chapter Note 1(l) of Chapter 68 of the Customs Tariff Act(CTA),1975clearly shows that the goods should be classifiable under Chapter 95of the Customs Tariff Act(CTA),1975.
The Revenue has sought the classification of the same under Chapter 68 of the Customs Tariff Act(CTA),1975as well as Chapter 95of the Customs Tariff Act(CTA),1975. In these circumstances, the imposition of penalty or confiscation is not warranted. It was evident that parts and accessories (except hulls) are not classifiable under Chapter 89of the Customs Tariff Act(CTA),1975.
It was observed that the classification of paddles, which are part of the canoe and its means of the proposition, under Chapter 89 of the Customs Tariff Act(CTA),1975is ruled out. Revenue has been classified the same under Chapter 89of the Customs Tariff Act(CTA),1975 in Customs Appeal No. 50179 of 2020. The said order classifying the goods under Chapter Heading 89039990 cannot be sustained giventhe aforesaid chapter note.
A two-member bench comprising Mr Raju, (Technical) and Mr Ajay Sharma, (Judicial) observed that combined reading of Chapter 1(p) of Chapter 95 and 1(p) of Chapter 44 of the Customs Tariff Act(CTA),1975implies that “means of propulsions” of sports crafts such as “canoes and skiffs” would be excluded from Chapter 95of the Customs Tariff Act(CTA),1975 and would fall under the Chapter relevant to the material of which the same is made of.
It was viewed that the “paddles” (means of propulsion) do not get covered by the description “toys, games and sports requisites” appearing in above mentions Chapter Notes. The CESTAT held that “the goods are correctly classifiable under Chapter Heading 68151090.”
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