1988 (1) TMI 111 - AT - Customs

Summary

Issues:
1. Interpretation of Customs Notification 205/79-Cus. dated 3.10.1979 regarding the importation of aluminium foils laminated with polyethylene film.
2. Rejection of re-assessment and consequential relief by the Assistant Collector based on the non-execution of a bond.
3. Dispute over the composition and characteristics of the imported aluminium foils in relation to the percentage of aluminium content and the presence of lacquer coating.

Analysis:

1. The appellants imported three consignments of Aluminium Foils for strip packing, facing issues with the thickness of the foil and the application of Customs Notification 205/79-Cus. The Collector of Customs (Appeals) denied the benefit of the notification, stating the goods were not covered as plain aluminium foil or aluminium foils laminated with polyethylene films, leading to the rejection of the appeal.

2. The appellants argued that they met the conditions of the notification, including having an approved programme for drug manufacture and using the foil only for strip packing medicines. They contended that the bond requirement under the notification was unnecessary as they had paid duty at a higher rate. The lacquering and polyethylene coating were essential for compliance with drug laws, and the rejection of re-assessment was unjustified.

3. The Respondent acknowledged that the notification did not prohibit lacquering but raised concerns about the aluminium content, referencing a previous case for interpretation. The Tribunal noted discrepancies in considering the aluminium content, requiring further examination by the authorities to determine if the imported product met the specified criteria. The case was remanded for re-evaluation based on additional evidence provided by the appellants.

4. The Tribunal emphasized the strict interpretation of the notification's terms, highlighting the necessity of lacquering for information printing and strip packing of medicines. The percentage of aluminium in the foil and the composite nature of the product were crucial factors requiring thorough assessment by the authorities, considering the certificate of analysis submitted by the manufacturers.

5. Ultimately, the Tribunal set aside the impugned order and directed a re-decision by the Collector (Appeals) to address the issues raised and the observations made in the judgment, ensuring a comprehensive review of the composition and compliance of the imported aluminium foils with the Customs Notification.