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Issues:
1. Confiscation of imported synthetic rags for being considered not completely pre-mutilated. 2. Levying duty at a higher rate due to alleged contravention of Import Trade Control Policy provisions. 3. Discrepancy in the rate of duty applicable to imported synthetic rags. 4. Eligibility of importers for a reduced rate of duty as per a specific notification. 5. Relevant date for calculation of rate of duty under Section 15 of the Customs Act. Analysis: 1. The first issue pertains to the confiscation of a consignment of synthetic rags on the grounds that they were not completely pre-mutilated, leading to a contravention of Import Trade Control Policy provisions. The appellant imported the rags under the claim of being an actual user for manufacturing shoddy yarn. Despite offering the rags for further mutilation, the consignment was withheld, and duty was levied at a higher rate of 80% ad valorem. The Tribunal set aside the confiscation, allowing release after complete mutilation at the appellant's cost under Customs supervision. 2. The second issue involves the discrepancy in the rate of duty applicable to the imported synthetic rags. The appellant argued for the reduced rate of 20% ad valorem, citing a notification reducing the duty, effective from 1-3-1987. However, the Assistant Collector maintained the 80% rate due to the alleged incomplete pre-mutilation. The Tribunal referred to legal precedents establishing that the rate of duty prevailing on the date of entry inwards of the vessel is applicable, leading to upholding the 80% rate in this case. 3. The third issue focuses on the eligibility of importers for a reduced rate of duty as per Notification 56/87, dated 1-3-1987. The Collector of Customs (Appeals) had granted a refund of duty paid in excess of 20% based on the entry inward date of the vessel. However, the Tribunal, following legal interpretations, upheld the 80% duty rate due to the vessel's entry inwards before 1-3-1987. 4. Lastly, the issue of determining the relevant date for calculating the rate of duty under Section 15 of the Customs Act was addressed. Legal authorities were cited to establish that the rate of duty prevailing on the date of entry inwards of the vessel governs the duty applicable to imported goods. The Tribunal's decision aligned with this principle, leading to the allowance of one appeal and partial allowance of the other based on the rate of duty determination. In conclusion, the judgment resolved the issues surrounding the confiscation, duty rate discrepancy, eligibility for reduced duty, and the relevant date for duty calculation, providing a comprehensive analysis based on legal interpretations and precedents.
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