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TMI Blog1998 (3) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... duty under the said Notification. They failed to produce any such evidence and the goods were allowed to be warehoused under Section 49 of the Customs Act, 1962 as per their request. On scrutiny of the invoice annexed to the Bills of Entry, it was found that the following grades of stamping foils have been imported viz. (i) Luxor Special PVC Grade with colour shade Nos. 220, 338, 369, 304, 303, 223, 308 and 355 (ii) Alufin Special PVC Grade and (iii) Colorit V 938, 920, 911 and 912. Since the appellants failed to produce any catalogue/literature, the Customs House obtained the relevant catalogue of M/s. Leonard Kurz GHBH Co., manufacturer/supplier of the goods in question, and noticed that on the basis of the information contained in the said manufacturers catalogue, the appellants were not eligible for the benefit of the concessional rate of duty and consequently they were not eligible for OGL benefit under Appendix 6 List 8 Part 1 of the Import Policy in force. A show cause notice dated 2-3-1990 was issued to the importers asking them to show cause against confiscation of the subject goods for unauthorised importation and against imposition of penalty. Contesting the notice, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the imported stamping foils in their leather industry. The Bench observed that on receipt of such evidence, the concerned Additional Collector of Customs would proceed to satisfy himself regarding the actual consumption of the imported stamping foils in their leather industry by the appellants and submit his findings to the Tribunal at the earliest. The case was listed to be heard on receipt of the said findings. 5. After the passing of the above miscellaneous application the appellants addressed a letter to the Additional Collector of Customs, Calcutta (received on 5-10-1993) forwarding zerox copies of relevant invoices, Bills of Entry, order dated 15-10-1990 of the Calcutta High Court (in terms of which the imported goods were released to the appellants), end-use bond executed on 3l-10-1990, extract from Register of maintenance and consumption and stock of imported materials/components by actual users, maintained under para 238 of the Handbook of Procedure on Import and Export, showing that all 3 pallets covered by the 3 invoices were used in the manufacture of leather bags during the period 13-12-1990 to 7-2-1991 leaving 118 inches of stamping foils as loss on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained over a period of time. For the above reasons, this register cannot be relied upon to substantiate the contention of the appellants that they had actually consumed stamping foils imported by them in their leather industry. The other document heavily relied upon by the appellants is the Chartered Accountant s certificate which is a valid piece of evidence and is recognised as an acceptable evidence for ITC purposes. We note that this certificate has been issued by Shri Anil Kumar Poddar, Partner of R.S. Poddar Co., Chartered Accountants, who are not the regular CAs of the appellant Company, as evident from the balance sheet for the year ending 31-3-1993 audited by Shri Daud Ahmed, Partner of A.W. Guha Ahmed, CAs. Secondly, the Chartered Accountant has nowhere set out what records had been verified by him before issue of the certificate of consumption of stamping foils in leather bags and Wallets manufactured by the appellants. Further, the quantity imported and utilised has only been referred to as 3 pallets without any indication of quantity of damage/wastage shown to be nil while the appellants themselves stated that 118 inches of stamping foils was left as lost on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this relevant clause it is clear that the expression for use must mean intended for use . All through it was the case of the appellants that they are the manufacturer-cum-exporter of leather goods of various types and registered as a Small Scale Industry. They are recognised as an Export House and are registered Member of the Council for Leather Exports as a manufacturer-cum-exporters of the leather goods and they are actual users and importing stamping foils for labelling/embossing/stamping the brand names etc. in different colours in leather products. From the impugned order we find that the Additional Collector of Customs has rejected the claim of the appellants for importation of the subject goods under O.G.L. as well as for the exemption under the said Notification No. 224/85-Cus., only on the ground that as per the manufacturer s catalogue the subject imported goods namely, Luxor special PVC grade, Alufin Special PVC grade and Colorft Stamping Foils are not used in the leather industry and the certificate of the supplier manufacturer to the effect that the subject goods are most suitable for stamping of leather/leather products in the invoice is of non consequence as i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by OGL as one of the raw materials components, consumables and tools allowed on Actual Users (Industrial) condition by the Export House/Trading House being Sl. No. 8 of Appendix-6 of the Import Export Policy for the year April 1988 to March 1991. It does not define stamping foils. Notification No. 224/85-Cus. grants partial exemption to the stamping foils when these are imported into India for use in the leather industry. From the record we find that in the writ petition filed by the appellants, as aforesaid, the Hon ble Calcutta High Court on 15-10-1990 while ordering for the release of the goods pending adjudication directed the appellants (petitioner therein) to give undertaking to the concerned Collector that in the event of their failure to use subject goods in the leather industry, they shall on demand pay to the concerned Collector the amount equal to the difference between duties leviable on the subject goods but for the exemption notification mentioned in the writ petition and the duties that has been paid. Accordingly the goods were released after furnishing the necessary bonds by the appellants as is evident from the order dated 9-1-1991 of the Calcutta High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to produce evidence regarding the actual use of the above items in the leather industry. The Dy. Collector had done so and submitted his report after perusing appellants records produced before him and found that the imported goods were actually not so consumed by the appellants. 12. We have also heard the appellants; And, the learned Counsel has even shown us one of the registers of 1990-91 titled as Register of Maintenance of Consumption and Stocks of Imported Raw Materials/Components by the Actual Users , on the very face of which it has been written ₹ 1990-91 and the entries therein have been made with reference to the importations from 13-12-1990 to 16-2-1991. 13. In view of the Report of the Dy. Collector given after enquiry in the light of Tribunal s directions, the appellants have not been able to produce sufficient evidence to show that the goods had been actually utilised in leather industry and even the documents produced before us during the course of hearing do not inspire confidence for the reasons already indicated in para 6 of this order and even the C.A. s certificate does not indicate as to how he had verified that the goods were actually utilised in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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