9911796707
TMI Blog1999 (8) TMI 359X X X X Extracts X X X X X X X X Extracts X X X X ..... ted without licence as per the provisions of the Export Import Policy 1992-97. Examination of the goods revealed that only 11 bales contained pre-mutilated rags while the remaining 67 bales valued at Rs. 9,02,427/- were found to contain serviceable non-mutilated used clothes. The value declared in the invoice i.e. Rs. 5,20,847/- did not appear to be correct transaction value. 2. The Adjudicating authority confiscated the goods with option to redeem the same on payment of a fine of Rs. 2,25,000/- and also imposed a personal penalty of Rs. 1,13,000/-. The Lower Appellate Authority set aside the Original authority s order and remanded the matter for de novo adjudication. The Adjudicating Authority, on remand, confiscated the entire consignme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts of the present case which are entirely different. He submits that out of the 67 bales, only 20 bales contained cotton jeans which cannot be considered as useable for the manufacture of shoddy yarn but the remaining bales consisted of used garments which could be used for shoddy yarn manufacture, and should have been allowed to be released after mutilation. Regarding classification, he draws our attention to the Tribunal s order in the case of Mala Combers (Final Order No. C/105/94-D, dated 21-2-1994) wherein the Tribunal has set aside the classification of non-mutilated serviceable garments under CTH 63.09 and submits that, therefore, the importers claim of classification under CTH 63.10 should be accepted. He submits that the valuatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd used clothing with no degree of mutilation and therefore, the Supreme Court judgment in the case of Garg Woolen Mills wherein the Supreme Court has held that the request for mutilation would be considered in the context of (a) of bona fide import and (b) depending upon the extent of mutilation already upon the goods is attracted since in this case the goods were found to be totally serviceable garments, the judgment applies on all fours. Classification under Customs Heading 6309 is appropriate as the goods are used and worn clothing. Application of Rule 8 of Valuation Rules also cannot be faulted in case of such goods for which there is no uniform standard. However, the appellants contention that the redemption fine cannot exceed the qua ..... X X X X Extracts X X X X X X X X Extracts X X X X
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