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TMI Blog1990 (2) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... -1989 passed by the Collector of Customs Central Excise, Rajkot. 6. Appeal No. C/524/89 Bom is directed against the Order-in-Original No. 45/Collr/89 dated 1-8-1989 passed by the Collector of Customs Central Excise, Rajkot. 7. Since the facts of all the six appeals are similar and the issue involved is identical, all the appeals were heard together and hence are disposed of by this common order. 8. Shri V.N. Deshpande, the learned advocate, gave the facts which are similar to all the appeals. The appellants imported different consignments of synthetic rags declared to be old synthetic rags completely pre-mutilated. The goods, on examination, were found to be old pants cut into two pieces each. The department objected that the goods did not conform to the definition rags as laid down in condition No. 14 of the OGL Order No. 2/88-91 dated 30-3-1988. In the adjudication proceedings initiated by the Collector, the goods allowed to be cleared on proper mutilation as prescribed by the Customs authorities on payment of appropriate duty. All the same, the appellants were imposed with a penalty with regard to each consignment and they have come in appeal against the imposition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, pleaded that the penalties imposed are unjust and uncalled for especially when the goods have been subject to further mutilation to the satisfaction of the Customs authorities and only thereafter cleared from the customs custody. He, therefore, strongly urged for setting aside the orders of penalties. 10. Shri Deepak Kumar, the learned JDR, on the other hand, supported the order of the Collector. He took us through the provisions of the Condition 14 of the OGL Order 2/88 and pointed out that under condition (ii)(b) Old Rags have been defined as those which are required for manufacture of shoddy yarn and may consist of articles of furnishing or clothing or other clothing so worn out, soiled or torn as to be beyond cleaning or repair. In this case, though the goods have been declared to be completely pre-mutilated, it is an admitted fact that the pants were only cut into two pieces and hence they could be re-used after repairing and re-stitching. So this condition itself is not satisfied. Moreover, as per the condition (c) of Para 14 of OGL Order the mutilation must conform to the requirements specified by the Customs authorities in their notification. Thereafter, he to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 75 in the case of Rajiv Woollen Mills v. Union of India wherein the Delhi High Court has clearly held that if the garments properly not mutilated in accordance with the OGL conditions are imported, they cannot be permitted import under OGL. 11. Shri V.N. Deshpande, the learned advocate, in reply contended that the indents and Letters of Credit were opened as per the previous Policy AM 1985-88 and hence the citations made by him are applicable to the facts and circumstances of the case. 12. After hearing both sides and perusing the available record, we observe that it is an undisputed facts that the pants cut vertically into 2 pieces have been imported, in regard to all the consignments, by the appellants. The specifications laid down in the Public Notice dated 13-12-1985 as also dated 8-6-1988 stipulates the requirement in regard to trousers and similar garments as follows: There should be one cut across each leg extending left to right or right to left and at least one cut horizontally across, so that these should result in a minimum of 7 or 8 separate pieces. It is also laid down that the cuts should extend through the entire length or width of the garment. The cutting should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erviceable rags. We also find that in the decision cited by the learned advocate there is a positive reference to the absence of any positive definition of rags and test of complete mutilation of garments made, earlier. Here, we find that the test of mutilation has also been prescribed in the new Policy and the Collector seeks to draw support for prescribing the extent of mutilation from the OGL order laid down in new Policy. The requirement of mutilation prescribed in the earlier Public Notice was also known to the appellants. In this view of the matter, we are unable to accept the argument of the learned advocate that the goods have come as per the OGL condition. All the same, there is some force in what he says that mutilation was done by the suppliers and they might have done for reasons of economy in expenditure or for want of labour or on similar consideration and there is no evidence to show that they deliberately imported the goods in that condition. However, from the indent it is observed that they have only sought for import of old synthetic rags completely pre-mutilated but had not given the specifications of these rags as per OGL order. Since in our view, the pants cut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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