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TMI Blog1989 (3) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... ich was found to have a quantity of "woollen yarn" is to be classified as a waste only under Tariff Item No. 51.03. 2. Briefly the facts are that the appellants have filed a bill of entry on 7-1-1988 declaring the goods as wool waste falling under T.I. 51.03.20 consisting of 48 bales and weighing net 6931 kgs. The value declared is Rs. 1,17,192. The appellants have claimed against an import licence endorsed for import of items listed against Group K-5(2) of Appendix-17 of the Import Policy, 1985'88. They were subjected to 100% examination and as per the examination report on the reverse of the bill of entry, a quantity of 1764 kgs. was found to be yarn in hanks. The number of hanks were tied together and they were of the same colour in one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hanks out of 1764 kgs. The difference represents "cones" whose import is against the declared description "wool waste" and would warrant notice u/s 111(m) of the Customs Act and that penalty imposed does not depend entirely on the value of the offending goods and, therefore, they have not complied with the provisions of Section 129E of the Customs Act, the same has been rejected. In their appeal, the appellants have pointed out that the issues involved are the same as that decided earlier by the CEGAT, Special Bench-A, reported at 1988 (36) E.L.T. 135 (Tribunal) - M/s. S.S. Enterprises v. Collector of Customs, Bombay and M/s. Mahavir Woollen Mills v. Collector of Customs, New Delhi in C/Appeal No. 437/88-A dated 29-07-1988 [1989 (39) E.L.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R. Nair, has contested, that the order of the Collector (Appeals) is in respect of non-compliance of the Section 129E and that merits have not been gone into and he has drawn our attention to the invoice wherein a mention has been made about the sales contract No. W-4396 dated 15-06-1987 and that it is necessary to go into this contract in order to find out whether supply related to yarn or waste and also invoice speaks of type 14223/4 and what this reference to the type has also to be gone into in order to establish whether the import was wool waste or yarn. He said that normally when wool waste is supplied a test certificate will be issued by the supplier and as the Revenue stake was high, the matter should be remanded to the Collector (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l waste pieces of the combed lap; burr waste and carded shoddy, wastes collected during carding; fibres recovered on cleaning the rollers of carding machines and known as strippings; (ii) Yarn waste : such as broken, knotted, tangled yarns collected as waste during spinning, doubling, reeling, knitting, etc. operations; (iii) Wastes : such as sorting wastes and washing wastes collected from the bottom of the vat or from the gratings of washers; (iv) Waste: such as old mattress hair and wool. Wool waste, therefore, includes yarn waste also, such as broken, knotted or tangled yarns, etc. etc. The test report reads as : "cut yarn in assorted lengths and colours". The lower authority has not made any reference to this test report in order t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case to the Collector (Appeals) for examination afresh of the Contract. If the invoice had cited the contract number, the original authority ought to have called for this contract and also other reliable certificates given by the supplier insofar as the wool waste is concerned and at this stage if the case has to be remanded further after a period of one year from the date of importation specially in view of the decisions already taken about the scope of the word "wool waste" vis-a-vis yarn, it is felt that it would be a time consuming exercise and these documents ought to have been verified by the original authority. Even if the importer had asked for the waiver of the show cause notice in order that the clearance may be expedited nothi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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