9911796707
TMI Blog2005 (7) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 11-10-2000 were confiscated under Section 111(m) of the Customs Act, 1962 and a penalty of Rs. 50,000/- was imposed on the appellant under Section 112(a) of the said Act. The Additional Commissioner also directed that the goods will be assessed to duty under sub-heading 4819.20 and CIF value be taken corresponding to US$ 1000 PMT and duty charged accordingly. 2. The appellant had filed bill of entry no. 112430, dated 11-10-2000 for clearance of Waste Paper and White Sulphate carton declaring value of the goods at Rs. 2,45,153/-. Show Cause Notice dated 17-11-2000 came to be issued on the ground that on examination, the goods were found to be folding cartons/boxes (printed) of non-corrugated paperboard. In response to the show cause not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Woollen Mills Ltd. - 1999 (107) E.L.T. 453 and found no reason to interfere with the order of the Additional Commissioner. 4. The learned counsel appearing for the appellant contended that the authorities below had not taken into consideration the fact that the goods were sold and purchased as waste paper and they were in fact used by the appellant for making paper. It was submitted that since the paperboard was printed in the name of the Company before export, it came to be exported because it was rejected by the Company before any use. Such paperboard printed in the name of some other company that rejected it cannot be of any use as carton by the appellant and the purchase was made only for the purpose of using it for recycling. He subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere folding cartons (printed) could never be rejected goods and must therefore, necessarily fall under sub-heading 48.19 and cannot be treated as scrap or waste falling under sub-heading 47.07. Chapter 47 of the Customs Tariff, inter alia, relates to recovered (waste and scrap) paper or paperboard. Heading 47.07 prescribes the rate of duty in respect of the items falling under heading Recovered (waste and scrap) paper or paperboard. The word recovered in the context means reusable substance from industrial waste. Therefore, all waste and scrap which was reusable can fall under this sub-heading. There is no dispute about the fact that the goods were described in the bill of lading as material for recycling purpose. Certificate on which r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted material on these cartons in such a large quantity would have prevented them from being used for marketing anyone else s product by using them as cartons. It is nobody s case that cartons were imported for their use on behalf of the same Company that got them printed for marketing its goods as shown on the cartons in the printed matter. It is therefore obvious that Company which might have got them printed did not find them of any use and, therefore, they came to be rejected as waste paper. Such recovered paperboard squarely falls under sub-heading 47.07 since it was clearly imported for recycling purpose. The fact that there was no defect in the cartons was of no consequence, since the cartons were already printed by some Company for i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
