2007 (2) TMI 515 - AT - Customs

Summary

Issues: Application for waiver of pre-deposit of differential duty and penalty u/s Notification 21/2002-Cus. dated 1-3-2002 for waste paper.

Summary:
1. The appeal concerned the waiver of pre-deposit of differential duty and penalty u/s Notification 21/2002-Cus. dated 1-3-2002 for waste paper.

2. The issue revolved around the denial of exemption under Notification 21/2002-Cus. dated 1-3-2002 to waste paper, which was claimed to be Light Weight Coated Waste Paper. The benefit of the notification was denied due to non-fulfillment of the condition of producing an end-use certificate by the importer.

3. The Tribunal had previously allowed goods declared as waste paper, but later found to be serviceable paper, to be mutilated to qualify for the exemption. The importers requested similar treatment in this case, proposing mutilation of the goods and providing the end-use certificate to avail the exemption.

4. Despite opposition from the SDR, the Tribunal decided to follow its previous orders and directed the importers to mutilate the goods into waste paper in the presence of Customs authorities. If the goods were subsequently used for pulping and the end-use certificate was produced, the benefit of exemption under Notification 21/2002-Cus. dated 1-3-2002 would apply.

5. The appeal was allowed on the condition that the imported consignment be mutilated as per the Tribunal's directions and the end-use certificate be provided by the importers.

6. The order was pronounced in court and copies were provided to both parties.