9911796707
TMI Blog1995 (12) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... he duty exemption entitlement certificate (DEEC) scheme. From the method of packing, physical and expert examination, chemical tests, etc. by reputed laboratories/Chief Chemist of the Deptt. of Revenue, it was seen that the goods imported were prime virgin fresh goods and not synthetic waste, acrylic and entangled filaments as declared. In the show cause notice dated 6-7-1993, it was alleged that the goods had been mis-declared and undervalued. On the basis of the general trend of prices in respect of contemporary imports, the unit price of 1.90 US $ per kg was adopted for assessment, as against the declared unit price of US $ 1.35 per kg. The goods were also not found to be covered under the advance licence and the DEEC book. The matter wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose of the seizure in the present case. 5. Shri Mohan Lal, ld. JDR replied that the samples had been sent to the Chief Chemist as per request of the appellant and that the test results were confirmed by the different authorities. He referred to the report of the Bombay Textile Research Association at page 80 of the Paper Book, wherein it has been reported that the given samples was a continuous filament tow without any entanglement. No defect like undrawn, fused filaments, etc. were observed in the sample and it was reported that the goods could not be considered as waste, and were a fresh virgin tow. It was not material as how the goods were packed. On jurisdiction of the DRI Officers, the ld. JDR referred to page 234 of Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated in para-2 as under : (Para-2 from page 55 Annex.-XIV). 2. My clients deny that the goods are in fact of prime quality and have been intentionally declared as waste. Though the goods are alleged on the basis of physical examination looked to be fresh and prime, the goods in fact are not of prime quality and are correctly supplied by the foreign suppliers as acrylic waste, and on closer scrutiny and examination it will be apparent that filaments are entangled and are waste material. Merely because the goods are machine packed being tows of long length, it is not permissible to draw the conclusion that they are of prime quality. On physical examination it may not appear that there is any defect and there is no entanglement in the fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him in advance before placing indent. He was told by Mr. Aggarwal that this was a normal practice of the trade and the consignments will be cleared without any doubt by the Customs Authorities as most of the importers were importing by adopting the same method of adjustment. 9. The appellant had stated in their letter dated 27-5-1994 that they wanted to cross-examine the Chief Chemist, the Chemical Examiner, the Dy. Chief Chemist and the Dy. Director, DRI. It is seen from the submissions made before the adjudicating authority at the time of the personal hearing that no such request was made and the only thrust of the arguments was with regard to the test of the samples. On conclusion of the personal hearing held on 16-6-1994, they have s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the seizure of the goods as well as issue of the show cause notice by the DRI could not be said to be without jurisdiction. 12. The Collector of Customs had ordered that the impugned goods should be assessed to duty as acrylic tow of prime quality under Tariff Heading No. 5501.30 and the assessable value of the goods should be determined on the basis of CIF value of US $ 1.76 per kg. We confirm this part of the Order. 13. However, keeping in view the overall circumstances of the case we reduce the amount of fine from Rs. 2 lakh to Rs. 1 lakh (Rupees One lakh only) and the amount of penalty from Rs. 1 lakh to Rs. 50,000/- (Rupees Fifty thousand only). Subject to above modifications, the impugned order is confirmed and we order accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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