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TMI Blog1985 (4) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice to the appellants as to why the goods imported should not be confiscated under Section III(d) of the Customs Act. In reply to this show cause notice, the appellants contended that Opthalmic Blanks imported by them are first quality, new goods in original packing and as per their selection found the ready stock available and as such they are fully covered by the Actual User s Import Licence. The Deputy Collector of Customs who held the inquiry did not accept the appellant s explanation. He held that the goods imported are stock lot goods and there was no specific endorsement on the licence for the import of stock lot goods. He, therefore, ordered confiscation but allowed redemption on payment of fine of Rs. 12,000/-. On appeal, the Appellate Collector of Customs rejected their appeal on the ground that the order passed by the lower authority is maintainable. Feeling aggrieved, as stated earlier, the appellants preferred a Revision Application before the Government of India. 3. During the hearing of this appeal, Shri V.N. Deshpande, the learned Advocate for the appellants contended that the authorities below treated the imported goods as stock lot or dispo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stocklot or disposal goods . He urged that the show cause notice was issued to the appellants alleging that they had committed an offence under Section 111(d) and/or clause (1) or (m) of the Customs Act, 1962. In their reply, the appellants had admitted that goods of German Origin were imported by them through Singapore exporters at reduced price. Thus, their admission established that the goods imported are either disposal goods or stocklot goods. Shri Rajagopalan further submitted that the goods imported are of different size and by weight at reduced price and these factors clearly establish that the goods are stock-lot or disposal goods . It was further submitted by Shri Rajagopalan that Rough Optical Blanks are normally imported in pieces and the price vary according to the dimensions of the pieces but the appellants have imported blanks of assorted shapes, sizes, and colour tints. He, therefore, prayed that the appeal may be rejected. Alternatively, Shri Rajagopalan submitted that in case it is held that the goods are not stock-lot or disposal goods , the matter may be remanded to the Deputy Collector for taking action under Section 111(m) which was one of the Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12-1955". 11. The order of the Appellate Collector reads I have carefully considered the appeal as well as pleas both oral and written. The appellants have pleaded that being raw materials these cannot become old and cannot be disposed of, as in the case of Motor vehicle parts. I observe that job-lot or stocklot goods are those which accumulate with the manufacturer/vendor and are not easily saleable due to overstocking or such other reasons. Even items like Rough Opthalmic Blanks may become stocklots in this way. As observed by the Central Board of Excise and Customs, New Delhi, in their Order Nos. 255-256 of 1974 dated 31-7-1974, the main characteristics of disposal goods is that the seller is more anxious to get rid of these, than to get the maximum profit, or even any profit at all, on them, and that these are normally sold in as-is-where-is condition, at the reduced price. The appellants have not disputed that these were in mixed sizes and were sold at the reduced price. The order passed by lower authority is maintainable. From the records it is seen that the lower authority has already taken lenient view. The redemption fine imposed is not excessive. I, therefore, see ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrol) Act or in the Order or in the Import Policy. Since the licence produced permitted import of Opthalmic Rough Blanks, the initial burden of establishing that the goods imported are disposal goods lies on the department. The Department has classified the goods as disposal goods firstly because the goods are in assorted quantities and designs secondly stocked by a stockist in Singapore and thirdly received on weight basis (vide show cause notice). 15. The reasons given by the Appellate Collector who upheld the order of the Deputy Collector are : (1) the appellants have not disputed that the goods were in mixed sizes and (2) they were sold at a reduced price. These two criteria would not be sufficient to classify the goods as disposal goods . The finding of the Appellate Collector that the goods were sold at a reduced price is not borne out from the records of the case or the evidence on records. Though in the show cause notice it was alleged that the acts of the appellants constituted an offence under Clause (m) of Section 111 of the Customs Act, there was no allegation of mis-declaration as to the value or there was any allegation as to what was the value of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or outmoded because the Opthalmic Rough Blanks could not be used as lenses. They should undergo the process of grinding and polishing according to a particular prescription in order to become lenses. 18. Imports Exports (Control) Act was enacted in the year 1947. Import Control Order, 1955 was made in exercise of the powers conferred by the Imports Exports (Control) Act, 1947. It appears, after IInd World War there was a large scale disposal of military stores by the Army, Navy and Airforce. The disposals were made mainly of Motor Vehicles and their parts. It appears the disposals were for a throw away price. Probably with a view to restrict import of such goods, it was specifically provided in Clause 5(3)(iii) of the Import (Control) Order that the goods to be imported against a licence should be new goods other than disposal goods. 19. As has been observed earlier, in the Act of 1947 or in the Order of 1955 or in the Import Policy there is any definition of the expression disposal goods . As the phrase consists of two words it will not be easy to find a dictionary meaning. Further, in the matter of interpretation of the Import (Control) Order placing reliance on the dic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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