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1991 (9) TMI 216

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..... ve contravened the provisions of Section 50(2) of the Customs Act, 1962, and further ordering confiscation of the same vide Section 113(1) of the Act, but granting option to pay fine of Rs. 40,000/- and further imposing personal penalty of Rs. 2,000/- vide Section 114 of the said Act. 2. Though the issue raised is in relation to grant of drawback, as the adjudication is by the Additional Collector, the jurisdiction is invested in the Tribunal, and as both the sides have pleaded that the jurisdiction of the Tribunal from any angle is not ousted, the appeal is heard and is being disposed of by this order. 3. The appellants, on 2-4-1991, filed Shipping Bill No. 162970, declaring the export item as 100% Rayon Powerloom Readymade Garments, a .....

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..... ause weightwise, plastic contents were more, the article could not be branded as not being the one of rayon. He also referred to a letter dated 19-4-1991, addressed to the Additional Collector, by Apparel Export Promotion Council; sponsored by the Ministry of Commerce, Government of India, stating that on being approached by the appellant, the Textile Commission, Govt. of India, Ministry of Textiles, at Bombay, was consulted, and that said committee, vide its letter dated 19-4-1991, had opined that in the sample furnished, basic structure being made from woven fabrics with sequins only attached, the rate of woven fabrics was more as compared to rate of sequins, as, without basic fabrics, the garments, would not exist. The Ld. Adv. pleaded t .....

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..... other point. The only objection raised is that weightwise, the plastic contents being more than Rayon fabric, the same does not fall within Entry No. 27 in the Appendix to the Drawback Rules, 1971. 7. Entry No. 27 of Appendix (as amended) reads thus :- 27. Made up articles and other articles chiefly made from textile materials not elsewhere specified. It is nobody s case that subject items are not garments, or that they are specified elsewhere. The use of the word chiefly in the entry positively indicates that the entry does not contemplate use, only of textile material in the garments. No criteria appears to have been laid down in the Drawback Rules, 1971, to interpret the said word Chiefly and one has to therefore, take its o .....

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..... ly or mainly of woven fabrics (excluding readymade garment o Silla). use of the word all sorts indicate that all types of garments (embroided garments including) if they are wholly or mainly woven up fabrics, are covered thereunder, and there is no dispute that Rayon fabrics are included, and the only requirement is that the garment ought to be wholly or mainly of woven fabrics. Here, as indicated above, the entire garment is of Rayon, with plastic sequins embroided thereon, and the basic structure of Rayon garment remains unchanged. 11. No decision has been cited to show that contrary view exists or that the point involved has been conclusively determined. 12. Under the circumstances, the subject items fall within the ambit of Ent .....

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