1999 (2) TMI 369 - AT - Central Excise

Summary

Issues involved: Appeal against order of Collector (Appeals) dated 12-7-1993 regarding classification of imported goods and imposition of redemption fine.

Classification of Goods Issue:
The appellant, a manufacturer of paper and paper boards, imported waste paper from New York for their factory, seeking assessment under tariff item 4707.90 u/s Notification No. 219/84. Customs authorities found printed and blank envelopes in the consignment, classifying them as envelopes under heading 4817.10, denying the benefit of the notification and requiring a license. The appellant argued that the goods were meant for actual consumption as raw material, not commercial use, and had a history of importing similar items under concessional rates.

End-Use Certificate Issue:
The appellant contended that they had given an undertaking to produce an end-use certificate to prove the goods were for their own consumption, as per Notification No. 219/84. They emphasized their intent to use the imported envelopes as raw material for making pulp, not for commercial purposes, and highlighted past instances where similar consignments were accepted after producing end-use certificates.

Redemption Fine Issue:
The appellant argued that the redemption fine of Rs. 40,000 was excessive. The authorities justified the fine based on discrepancies between the bill of entry description and the actual goods found upon examination. The appellants sought a reduction in the fine, citing the past practice, offer of mutilation, and intent to prove bona fides.

Judgment Summary:
The Tribunal upheld the classification of the goods as envelopes under heading 4817.10, denying the benefit of Notification No. 219/84 due to discrepancies in the imported items. The Tribunal emphasized that the condition of goods upon importation determines classification, regardless of intended use post-importation. While acknowledging the appellants' efforts to demonstrate bona fides, the Tribunal reduced the redemption fine from Rs. 40,000 to Rs. 20,000, considering the totality of facts and circumstances. The appeal was disposed of accordingly, providing consequential relief to the appellants.