9911796707
TMI Blog1988 (7) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... :-On 18.7.1987, a bill of entry was filed on behalf of the appellant mills for the clearance of 86 bales of goods described in the said bill of entry as mixed coloured woollen thread waste . The assessable value of the goods was declared as Rs. 1,30,587.87 and an import licence for importation of items falling under Appendix 17 of K-5(11) of AM 1985-88 Policy was produced for clearance of the goods. Examination of the goods on 11.8.1987 revealed that they comprised 70% of woollen yarn in the forms of cones and spools and 30% was thread waste. It was, therefore, alleged by the department that the goods had been imported in contravention of the import licence produced by the appellants for clearance of the goods and therefore these were l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent between the importers and the suppliers to import woollen yarn alongwith thread waste. If it were a genuine mistake, the bales would have contained woollen yarn and waste mixed up haphazardly and not packed in identifiable spools/hanks/coned and bundles. It is noted that the woollen yarn in hanks and spools is suitable at least for hand carpeting. It is therefore plausible to hold that the importers deliberately arranged to import woollen yarn alongwith wool waste. However, I take a lenient view in view of the fact that the importers are an actual users and the goods have incurred demurrage during the period of Customs formalities. 3. Learned advocate for the appellant submits that the aforesaid finding of the adjudicating authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as further taken support from a direct decision of the Tribunal in the case of S.S. Enterprises v. C.C Bombay [1988 (36) E.L.T. 135]. The learned advocate also takes support from another decision of the Tribunal in the case of Swastik Woollens and Others v. Collector of Customs, Bombay [1988 (34) E.L.T. , 83] wherein it has been held in para 26 of the said report as follows :- 26. As observed earlier, there is no statutory definition of the term woollen waste". Nor had any other definition of the said expression as such been placed before us. It is in this background that we have considered the case of the appellants and the technical authorities and expert opinions on record and arrived at our conclusions. In this context, we have also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, they would not come within the scope of the expression wool waste . Hence, it has been rightly held, according to the learned JDR, that the imported goods are not covered by the licence and are also misdeclared in the bill of entry. The impugned order, therefore, according to him, is correct in law and on facts. Replying, learned advocate for the appellant has relied on the observations of the Tribunal in the case of S.S. Enterprises mentioned supra and has stated that broken knotted or tangled yarn is not the only form of yarns waste. The CCCN and the HSN quoted above merely give them as examples. What is of relevance is that the yarn waste is collected from various operations referred to above in the spinning and post-spinn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Tariff Headings 53.03 and 51.03 respectively. The Explanatory Notes, we observe, merely give by way of examples of yarn waste as broken, knotted or tangled yarns. It is also on record that the spools and cones are small pieces in 10 gms. to 200 gms. and vary in shade, quality of wool and count of yarn as well. It is also further on record that the appellant has offered to get the goods mutilated according to the satisfaction of the Customs authorities to make them conform to wool waste as per the latter s understanding. Since the department has not categorically proved that the goods are not wool waste, as discussed above, the charge of misdeclaration of description of goods and their value is also not tenable. Hence while setting ..... X X X X Extracts X X X X X X X X Extracts X X X X
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