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TMI Blog2000 (10) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 3,58,885/- CIF under Section 111(d) of the Customs Act, 1962 read with Section 3 of Foreign Trade (Development and Regulations) Act, 1992 read with clause 3 of the Import (Control) Order, 1955. However, he gave an option to importers to redeem the goods on payment of fine of Rs. 4.5 lakhs under Section 125 of the Act. He imposed penalty of Rs. 36,000/- on the importers under Section 112 of the Customs Act, 1962. 2. Revenue is aggrieved with the order of the Commissioner (Appeals) setting aside this Order-in-Original passed by the Deputy Collector, Customs House, Madras. In the order-in-original, the Dy. Collector has noted that the goods were examined under the first appraisement procedure on 28-9-93 and as per the examination report all the bundles were found to contain textile fabrics (gents wear) as against the declared description of outer lining in the B/E, Invoice and Bill of Lading. The Advance Licence produced had the description "outer lining" and the export product as "leather jackets". However, on being pointed out that the imported material was textile fabrics of "gents wear/suiting material" and that the same was not covered by the licence produced, the impor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l and it should be protected by another material which has high strength and polyester will exactly fit in being a strong fabric. They relied on several other several materials in support of their contention. Therefore, the Collector (Appeals) accepted their contentions that the imported material could be used as lining material for leather jackets of reversible types. He accepted their argument that in leather garments one has to choose the material which is equally strong in weight and quality according to the type of garment and its prospective life and polyester fabric will exactly fit in to their requirement being a strong fabric. He also accepted the certificates produced from the Council for Leather Exports, Madras and the Chamber of Commerce, Taiwan wherein both of them had certified that synthetic/polyester fabrics men's wear and suiting fabrics can be used as lining material in leather garment. He has also noted the foreign buyer's letter dated 20-10-1993 who was the supplier of the material under reference to indicate that the imported fabric must be utilized as lining material in leather jackets to be exported under their order. The test report issued by M/s. SGS Ltd., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to this Fairchild's Textile Dictionary, the lining material means fabrics used to cover only fabrics, especially when the inner surface employs different material than the outer surface. These include garment linings and those used in mechanical utilities and serve to prevent wear on one side. Linings are produced in a wide range, and are generally smooth, lustrous fabrics made of silk or man-made fabrics and or/mercarized cotton. They may be woven in a plain, twill or stain weave. Formerly, principally made with cotton warp and luster wool, alpacca or silk filling. Revenue has also noted that definition appearing in Handbook on Glossary Dictionary terms Bureau of Indian Standards wherein the lining cloth is defined as under :- "A separate entity used in making up garments and other articles, consisting of single layer of material loosely held in place along one or more edges. It does not modify the properties of the main fabrics with which it is associated but can impart certain performances characteristics to the article." 5. Therefore, the Revenue contends that the lining material has certain functional utility in its use in the garment under manufacture. Therefore, the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, there is no nexus between the imported material and the use of it in the export product although supplier had indicated that it should be used in leather jackets. However, being under confiscation, it was not used and the export had been carried out by using other material. Therefore, the finding given by the original authority that there has to be a nexus is also sustainable. He contended that the item is not at all "lining material" as it is a 'suiting material' and hence the order is required to be reversed. 8. On the other hand, Ld. Consultant emphasized its use and pointed out that the term "lining material" cannot be understood in a restricted way. She filed paper book and pointed our from the certificate issued, dated 15-10-93 by M/s. Apparels and Handloom Exporters Association and that the main fabric used as "outer lining" in reversible jacket for exports. Likewise, she relied on the certificate dated 25-9-93 issued by Council for Leather Exports who also certified to the effect that item in question "can be used as lining material in leather jackets for export." The certificate, dated 19-10-92 issued by M/s. Taiwan Chamber of Commerce also had certified to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t modify the properties of the main fabrics with which it is associated but can impart certain performances characteristics to the article." The Textile Terms and Definition 8th Edition by the Textile Institute has also defined the "lining material" as 'Anyone of wide variety of fabrics used between the inner and outer layers of a garment to improve shape, retention, warmth or bulk. Interlining may be of woven material and may be produced with or without fusible adhesive coating.' In the present case, the leather jackets shown to the Commissioner was a reversible jacket. On being reversed the inner garment said to has been used as a lining material, in fact, does not become apparent as a lining material but instead resembles a 'coat'. The imported material is a particular kind of polyester 'gents suiting material'. It does not satisfy the definition of "out lining" or "lining material". Neither it is understood in trade to mean as 'lining material' merely because the supplier wanted it to be used as a 'lining' or' outer lining material, it does not become so. The whole inner surface of reversible type of leather jacket on reversal is outer surface of gents wear material, and is a ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l as held in the Order-in-Original. The respondents are relying upon the certificate issued by the Taiwan Chamber of Commerce who have only certified that the material 'can be used as lining material'. To the same effect, a certificate has been issued by Council for Leather Exports and Apparel and Handloom Exporters Association. Merely because men's wear fabric can be used as an outer material for jackets that by itself will not make gents suiting material into a 'lining material' as understood and as traded. Ld. Consultant was relying upon the definition of 'lining'. However the said definition also emphasized that "Choose the weight of lining to suit the weight of the fabric and choose the quality according to the type of garment and its prospective life. For example, a cheap talleta can be used to line an evening dress". This by itself will not make gents wear material as a 'lining material.' We cannot stretch the definition of 'lining' to bring within its ambit a gents suiting material used as a inner reversible jacket. What we are required to consider is the primary use to which a lining material is put to. A gents suiting material is not traded as a 'lining material'. 11.&em ..... X X X X Extracts X X X X X X X X Extracts X X X X
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