By TIOL News Service

MUMBAI, APRIL 04, 2017: THE appellant is an importer of sports goods and filed a bill of entry for the import of 'PVC inflatable toys'.

The impugned items were (i) realistic starfish pool (ii) smiley giraffe baby pool (iii) sunset glow baby pool and (iv) seahorse pool.

The original authority classified the goods under heading no. 9506 9990 by observing that the specific heading 'swimming pools and paddling pools' was most appropriate. Furthermore, the benefit of preferential duty under the Asia-Pacific Trade Agreement was also denied.

The Commissioner(A) also upheld this view by observing that the declaration by the importer claiming classification under heading no. 9503 0030 did not merit consideration since the advertising/marketing literature described the items as 'pool'. He also rejected the contention that, in the absence of a statutory definition, trade parlance would decide whether the goods are toys. The impugned order also noted that the invoice, as well as retail packaging, describes the product as 'pool'. It is also held by the first appellate authority that the reduced size model becomes a toy only when it loses some essential characteristic which the goods under import, being functional as paddling pools, had not. Relying upon the lexicographical meaning of a paddling pool as a 'pool that is not deep that small children can play in', the first appellate authority concluded that the goods are indeed paddling pools.

Aggrieved by the impugned order requiring them to pay a higher rate of duty, the appellant is before the CESTAT seeking the quashing of the demand and informing that the issue is a recurring one and that consignments are pending for clearance.

The Bench after considering the submissions inter alia observed -

5. We observe that a 'paddling pool' is one in which children can be introduced to the basics of swimming or water calisthenics; these would naturally be smaller and shallow version of swimming pools with sufficient water to enable the appropriate exercise without endangering the safety of inexpert users. Upon careful perusal of the descriptions, we note that the dimensions and the depth do not permit such exercises to be carried out even by tiny tots in these products. Consequently, these imported goods, upon inflation, are nothing but reduced models of the 'real McCoy'. The issue for determination is, therefore, restricted to the plausibility of classification of reduced models as the full-scale product itself.

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9. The description in the catalogue make it amply clear that the imported goods are reduced models. The decision cited above clearly requires that such reduced models would, not unnaturally, be toys and nothing else.

Holding that the imported goods are classifiable under heading 9503 30, the impugned order was set aside and the appeal was allowed.

(See 2017-TIOL-1114-CESTAT-MUM)