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TMI Blog2011 (7) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... 203/92 and 79/95, without payment of duty. Another consignment of BAM was cleared by the Respondents under bill of entry dated 06.03.1998 and thereafter one more consignment was imported. The last two consignments were warehoused and not cleared by the authorities. 3. In all these consignments of BAM, the Respondents declared the product as Butyl Acrylate Monomer and claimed the classification under heading 2916.12. The assessments were sought by the Respondents as adhesives under the DEEC license. 4. Enquiries were initiated by the Revenue against the Respondents on the belief that the product imported by the Respondents was defined organic chemical and was not an adhesive. The Revenue/appellant took a stand that the advanced licences covering imports of adhesives submitted by the Respondents for clearance of the consignments under DEEC scheme, availing the benefit of customs notification were not applicable in the matter of clearance of the goods in question inasmuch as the said licences were for import of adhesives and the product imported was not adhesive. Accordingly, searches were conducted in the offices of the Respondents and their statements were recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the customs authorities after drawing samples and satisfying themselves that the product was an adhesive and squarely covered by the advance licences. Their advance licences were accordingly debited by the customs authorities. As such they submitted that the longer period of limitation could not be invoked against them inasmuch as there was no mis-declaration on the part of the Respondents. 8. The said show cause notice culminated into the impugned order passed by the Commissioner, whereby, it was held that BAM was not adhesive and the benefit of the advance licences and the notification in question was not available to the importer. Accordingly, the demand of duty was confirmed by invoking the extended and longer period of limitation in respect of 14 bills of entries on the ground that the Respondents had mis-declared the product in question. 9. It was also held by the Commissioner that the goods are liable to confiscation, but inasmuch as the same were not available, no redemption fine had been imposed by him. Penalty of equivalent amount was imposed upon M/s. Sanghvi Overseas. The goods covered by the bills of entry dated 08.05.1997 and 19.03.1998 which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n brands. It was further contended that in the product literature submitted before the Tribunal, the portion specifying that BAM was used as raw material for Adhesive Industry was erased by the Respondent Importers. He also refuted the Respondents' claim that BAM in the Monomer form on coming in mere contact with heat and light undergoes self-polymerization and au contraire it was submitted that it requires a specific industrial process. 12.The next contention was that the Tribunal also failed to take into account that the difference in value between acrylates and products obtained after polymerization is one and a half times to three times which means polymerization involves complicated technical and industrial processes. It has been contended that various experts in the fields from industry as well as renowned institutions have categorically opined that BAM is not an adhesive. It was also argued that taking into account the product literature of M/s LG Chemicals Ltd, a manufacturer of the imported product, which was part of the appeal petition, revealed that BAM was a raw material for adhesive. It was claimed that BAM in inhibited state is quite different from product obt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the proper officer that BAM is an adhesive. The department was very much conscious that goods were claimed as an adhesive and they were so satisfied after examination of the goods and deliberation made in this regard. Therefore, the 14 consignments referred to in para 4 of the Show Cause Notice were cleared on the basis of advance licence under Customs Notification No. 203/92-Cus. or 79/95-Cus. Customs authorities cleared the goods with consciousness and knowing fully well that BAM is an adhesive. There is no question of suppression of any fact before customs authorities because no fact was concealed. Each of the consignments were tested and chemically examined. 17. Therefore, the counsel appearing for the Respondents submitted before us that the allegation made by the customs authorities in the Show Cause Notice cannot be allowed to stand on two counts. Firstly, the goods imported were very much covered by the licence and secondly, assuming, though denying that the goods were not covered under the licence even then customs authorities cannot change their stand inasmuch as after debiting of the licence, the position becomes irreversible. Licence cannot be restored to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd is given in English language as well as Korean language and there is no reason to doubt the veracity of the said literature. Inasmuch, as the manufacturers themselves have shown the use of Butyl Acrylate as adhesive as well as textile binders, we see no reasons to take a different view. 20.Under the DEEC scheme, the word `adhesives' has not been defined. Under exemption notification, the word `materials' has been defined as under: - "(a) raw materials, components, intermediates, consumables, computer software and parts required for manufacture of export products" Therefore 'materials' permissible, are not only raw materials but are also intermediates for such raw materials, which are required for manufacture of export products specified in the licences, which in this cases are 'Leather Industry' products. The term used as 'material' required for manufacture of export products would encompass such entities also which are not only directly used or usable as such in the manufacturing processes but also which could be used with same processing. 21.From the Encyclopaedia of Chemical Technology 4th Edition published by John Wiley and Sons, it is found for Acryl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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