Pair Of Bra Cups Are Used For One Brassier, Customs Duty Is To Be Charged On Value Of Pair: CESTAT

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that if a pair of bra cups is used for one brassier, customs duty is to be charged on the value of the pair.

The bench of P. A. Augustian (Judicial Member) and R. Bhagya Devi (Technical Member) has observed that duty is to be charged on the value of the pair and not on a single piece. The packing list clearly shows the items were imported in pairs, and it is also a fact that a pair of bra cups is used for one brassier. The invoice also shows that the unit price shown is per pair, and accordingly, the total value is calculated. Therefore, the unit price for the pair should be taken as per the unit price (set of 2 pieces) rather than artificially splitting the price for each piece. Section 19 of the Customs Act takes cognizance of articles imported in sets, and therefore the goods that are in pairs should be considered as a unit, and the rate of duty should be calculated accordingly.

The appellant/assessee has challenged the classification of the goods 'Bra Cups' imported by the appellant during the period from February 25, 2010, to July 14, 2010. The appellant claimed classification under CTH 3926 of the Customs Tariff Act, 1975, as against the classification by the department in the order under CTH 6212.

The assessee contended that the burden of proof lies on the department to prove that the goods are rightly classifiable under 6212 and not under 3926. At the time of importation, the goods were in raw form and could not be considered 'parts of brassieres' since they had to be further processed to become brassieres. Therefore, the goods are rightly classifiable under Chapter 3926 and not under 6212.

The department contended 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, it emphasizes that the department was right in reclassifying the goods as 'parts of Brassier' under CTH 6212.

The tribunal upheld the classification of the imported goods under CTH 6212, and consequently, the 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.

Counsel For Appellant: B. V. Kumar

Counsel For Respondent: Neeraj Kumar

Case Title: M/s. Lovable Lingerie Ltd. Versus The Commissioner of Customs (Appeals)

Case No.: Customs Appeal No.245 of 2012

Click Here To Read The Order