Unit price for pair of Bra Cups used for one brassier should be taken as per Unit Price: CESTAT orders to Recalculate Customs Duty [Read Order]

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) ordered to recalculate the customs duty and noted that the unit price for pair of bra cups used for one brassier should be taken as per the unit price.

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

The AR on behalf of the Revenue reiterating the findings of the Commissioner ( Appeals ) in the impugned order submitted that there is no bar in issuing show-cause notice for reclassification of the goods even though earlier the goods were assessed and already cleared. Relying on various decisions, emphasises that Revenue was right in reclassifying the goods as ‘parts of Brassier’ under CTH 6212.

 A Two-Member Bench comprising P A Augustian, Judicial Member and R Bhagya Devi, Technical Member observed that “In this case, the Chapter 6212 clearly 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 Tribunal noted that the unit price for the pair should be taken as per unit price (set of 2 pieces) rather than artificially splitting the price for 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.

“In view of the above, we uphold the classification of the imported goods under CTH 6212 and consequently, impugned order is upheld as far as classification is concerned and 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 Tribunal concluded.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates