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Issues:
Challenge to validity of judgment and order passed by CEGAT in Appeal No. CD(Bom.)-218, 286/86 [2000 (123) E.L.T. 640 (T)] regarding misdeclaration of polyester yarn exported by petitioners. Analysis: 1. Misdeclaration Allegation: The petitioners, exporters of yarn, were accused of misdeclaration by Customs authorities regarding 754 cartons of polyester yarn exported under seven shipping bills. Samples were drawn, statements recorded, and a show cause notice issued. The goods were confiscated with an option to redeem on payment of a fine and a penalty imposed, which was confirmed by the Tribunal. The authorities found the yarn was manufactured from waste fiber, leading to this challenge. 2. Petitioners' Contentions: The petitioners argued there was no evidence proving the yarn was made from waste fiber, citing a certificate and claiming the yarn was made from first-quality fiber. They contended the penalty was unwarranted due to lack of a clear definition of "virgin fiber." However, the court found no merit in these arguments, upholding the authorities' findings based on recorded statements indicating the yarn was indeed made from waste fiber, as admitted by a spinning manager. 3. Legal Provisions: The petitioners argued that Section 113(i) of the Customs Act, under which the goods were confiscated, was wrongly invoked as the goods were not dutiable or prohibited. They claimed the export was not completed, and therefore, confiscation was premature. However, the Tribunal rejected this argument, stating that misdeclaration during the export process warranted action under Section 113(i), emphasizing that once goods come under Customs control, exporters lose control over them, justifying the confiscation in this case. 4. Precedent Analysis: The petitioners cited judgments in other cases to support their arguments, but the court distinguished those cases as having different factual circumstances where the misdeclaration charges were not proven. The court found that in the present case, misdeclaration was established, making the provisions of Section 113(i) applicable, and thus, the cited judgments were deemed irrelevant. 5. Final Decision: The court declined to interfere with the order of CEGAT, ultimately rejecting the writ petition challenging the validity of the judgment and order passed by CEGAT in the matter of misdeclaration of polyester yarn exported by the petitioners.
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