2004 (7) TMI 403 - AT - Customs

Summary

Issues:
1. Interpretation of Export and Import Policy regarding export of 'Heelgrip Goat Suede Lining Leather' without a specific license.
2. Classification of goods under ITC (HS) Code 4102 for export purposes.
3. Deletion of Para 162 of the EXIM Policy 1992-97 and its impact on export regulations.

Issue 1: Interpretation of Export and Import Policy
The appeal was filed by the Revenue against an order confiscating 'Heelgrip Goat Suede Lining Leather' for export without a specific license under Para 159 of the Export and Import Policy 1992-97. The original authority imposed a fine and penalty on the exporter for the attempted export without the required license. However, the Commissioner (Appeals) found that the goods fell under the description of 'finished leather, all kinds' under ITC (HS) Code 4102, making them freely exportable without the need for a specific license as per the Export and Import Policy.

Issue 2: Classification under ITC (HS) Code 4102
The Revenue argued that the goods should be classified under ITC (HS) Code 4104, which required a license for export. They contended that specific entry should prevail when goods are covered by both general and specific entries. On the other hand, the Counsel for the exporter argued that the lining leather met the criteria for 'finished leathers' under ITC (HS) Code 4102 and had undergone all necessary processes for export as per the DGFT guidelines. The Counsel highlighted that the goods satisfied the conditions under ITC (HS) Code 4102 and were freely exportable.

Issue 3: Impact of Deletion of Para 162 of EXIM Policy
The main argument raised by the Revenue was the deletion of Para 162 of the EXIM Policy 1992-97, which they claimed affected the export regulations. However, the Tribunal noted that even after the deletion of Para 162, the Customs authorities and DGFT continued to act based on the definition of 'finished leather' provided by the DGFT. The Tribunal concluded that the goods in question were 'finished leather, all kinds' and fell under the benefit of ITC (HS) Code 4102 for export, thereby upholding the decision of the Commissioner (Appeals) and rejecting the appeal by the Revenue.