2005 (9) TMI 431 - AT - Customs

Summary

Issues: Revenue's appeal against confiscation of imported goods for export without Specific Import Licence (SIL) - Interpretation of whether imported printed polybags with hanger require SIL - Comparison with similar cases - Decision of Commissioner (Appeals) in favor of respondents - Confirmation of Commissioner (Appeals) decision by Appellate Tribunal CESTAT, CHENNAI.

In the present case, the main issue revolved around the Revenue's appeal against the confiscation of imported printed polybags with hangers for export without a Specific Import Licence (SIL). The respondents had imported polybags with a specific logo, "Quick Silver," for use in exporting garments. The Revenue contended that these imported items were consumer goods and required SIL. The original authority had held the imported goods liable for confiscation and imposed a redemption fine. However, the Commissioner (Appeals) ruled in favor of the respondents, stating that since the polybags were already stamped with the buyer's logo and intended for export with garments, they could not be sold in India as commercial goods, hence not requiring SIL. The Revenue, aggrieved by this decision, filed an appeal based on a previous order by another Commissioner (Appeals) in a similar case.

Upon careful consideration of the case records, the Appellate Tribunal found that the departmental representative could not confirm the finality of the previous Order-in-Appeal favorable to the Revenue. Nevertheless, the Tribunal agreed with the reasoning of the Commissioner (Appeals) in the impugned order. The Tribunal noted that the polybags imported bore the buyer's logo, making them unsuitable for sale to others in India. Since these polybags were exclusively used for exporting garments and not for domestic consumption, they did not fall under the category of consumer goods requiring SIL. Therefore, the Tribunal upheld the decision of the Commissioner (Appeals) and rejected the Revenue's appeal, emphasizing that the imported goods did not necessitate any import license. The Tribunal's decision was pronounced in open court on 13-9-2005.