1991 (2) TMI 341 - AT - Customs

Summary

Issues:
Classification of imported goods under Customs Tariff - Confiscation of goods - Levying of duty - Imposition of penalty - Mis-declaration of goods - Predominance of wool content in consignment.

Detailed Analysis:

1. Classification of Imported Goods under Customs Tariff:
The case involved an application arising from the order of the Collector of Customs confiscating 69 bales of waste material and imposing duty under Heading 5505.10 of the Customs Tariff. The goods in question were found to consist of different categories, including genuine wool waste, brownish fibrous material, and blended fibrous material of wool and synthetic. The issue was whether the goods should be classified as synthetic acrylic waste or wool waste for the purpose of levying duty and imposing penalties.

2. Confiscation of Goods and Levying of Duty:
Upon examination and analysis, it was found that the consignment contained a blend of wool and synthetic material, with varying percentages of wool and acrylic in different bales. The adjudicating authority held that the bales containing synthetic acrylic waste should be classified as such and levied duty accordingly. The entire consignment was confiscated on grounds of mis-declaration, with an option to pay a fine in lieu of confiscation. The appellants contested this decision, arguing that the consignment should be considered predominantly wool waste due to the higher wool content.

3. Imposition of Penalty and Mis-declaration of Goods:
The appellants relied on a previous Tribunal order regarding the classification of heterogeneous mixtures of fibers and yarns as waste material. They argued that since the consignment predominantly consisted of wool waste, it should be classified as such. The Tribunal agreed with the appellants, citing the predominance of wool content as the determining factor for classification. Consequently, the impugned order of confiscation, duty imposition, and penalty was set aside, and the appeal was allowed in favor of the appellants.

In conclusion, the judgment revolved around the classification of imported waste material under the Customs Tariff, specifically determining whether the consignment should be classified as synthetic acrylic waste or wool waste based on the predominance of wool content. The Tribunal ruled in favor of the appellants, setting aside the order of confiscation, duty imposition, and penalty, and allowing the appeal.