2005 (8) TMI 451 - AT - Customs

Bags - Printed bags (in carton forms) utilized as packing material and exported along with goods

Summary

Issues:
Interpretation of exemption Notification for imported goods described as "printed bags (in carton forms)" and whether the goods qualify for exemption as per the Notification.

Analysis:
The case involved an appeal against an Order-in-Appeal passed by the Commissioner of Customs (Appeals), Bangalore, regarding the clearance of imported goods described as "printed bags (in carton forms)" by granting exemption under Notification No. 16/2000-Cus. The Revenue demanded duty on the imported goods, arguing that the exemption applied only to printed bags and not cartons and sheets. The original authority confirmed the duty, stating that the exemption was not applicable to cartons. The Commissioner (Appeals) upheld this decision, leading the appellants to appeal before the Tribunal.

During the proceedings, the appellants, represented by their counsel, contended that they were bona fide exporters who had imported only printed bags in carton form, thus qualifying for the exemption. On the other hand, the Revenue, represented by the SDR, argued that the goods were cartons and not printed bags, hence ineligible for the exemptions. The Tribunal carefully examined the records, particularly the Bill of Entry, which described the goods as "PACKING MATERIALS PRINTED BAGS (CARTON TYPE) TOP & BOTTOM (SHEETS OF PRINTED BAGS)" and noted that the importers had claimed the benefit of the Notification. Customs officers had cleared the goods without duty payment after examination, acknowledging them as packing materials. It was undisputed that the importers were bona fide exporters who used these bags as packing material for exports. Notably, no sample was retained to prove that the items were not bags and thus ineligible for exemption. Considering the facts and the principle of just and fair play, the Tribunal allowed the appeal, granting consequential relief to the appellants.

In conclusion, the Tribunal's decision was based on a thorough review of the facts, the description of the imported goods, and the application of the exemption Notification. The judgment emphasized the importance of interpreting such notifications reasonably and in favor of exporters, especially when the goods had been cleared by customs authorities after due examination.