9911796707
TMI Blog2015 (10) TMI 1020X X X X Extracts X X X X X X X X Extracts X X X X ..... ich have been placed on record show that the rolls of the paper which had been imported were damaged. Therefore, just because some of the paper contained in the damaged rolls was found to be of serviceable quality, the consignment cannot be treated as of prime quality kraft paper more so, when the Adjudicating Authority has accepted the declared transaction value of the goods. - Department cannot allege mis-declaration of goods and seek confiscation under Section 111(m) - Department cannot allege that no credibility can be attached to the certificate of Assistant Commissioner – Found no merit in the Revenue’s Appeal – Decided in favour of the Assessee. - C/52648/2014-CU(SM) - Final Order No. A/50430/2015-SM (BR) - Dated:- 24-2-2015 - S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of paper which was fresh karft paper, would not be eligible for exemption under Notification No. 21/2002-Cus. The department also drew samples from the imported consignments and got the same tested through CPPRI-Saharanpur and the report of CPPRI-Saharanpur indicated that the paper imported cannot said to be waste kraft paper. The department was accordingly of the view that the imported paper, which is in good condition, is not only ineligible for duty exemption under notification no. 21/2002-CUS, but its declared transaction value is also on lower side. The matter was adjudicated by the Additional Commissioner vide Order-in-Original dated 31-1-2014 by which the Additional Commissioner while accepting the declared transaction value held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of entry as waste paper/used kraft or waste paper/used brown kraft, on examination, only 41.8096 MTs of the paper was found to be waste paper and the remaining quantity of 230.983 MTs was found to be fresh/serviceable paper; that the samples of the paper which appeared to be fresh kraft paper were drawn and were tested by CPPRI-Saharanpur whose report indicated that tensile strength and bursting strength of the sample paper was comparable with these parameters of prime quality kraft paper; that the kraft paper, in question, can be used for various purposes including making grocery bags, wrapping paper, bituminized paper, etc.; that the same cannot be called waste or scrap of paper and paper-board; that the Commissioner (Appeals) has erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.K. Sharma, Senior Vice-President of the respondent representing the respondent defended the impugned order by pleading that the goods imported were waste and scrap of kraft paper; that this fact is clear from the photograph of the goods which have been placed on record; that the goods imported were in the form of rolls of assorted size and width and from the photograph it is clear that the rolls were damaged rolls and the papers in those rolls could not be used for writing or printing purposes; that pre-shipment inspection of the goods also certifies the goods as waste and scrap of paper, that just because the tensile strength and bursting strength of the samples of paper were found to be comparable with these parameters of the fresh kraf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder. 5. I have considered the submissions from both the sides and perused the records. The respondent had imported eight consignments declared to be containing waste paper/used kraft or waste paper/used brown kraft by classifying the same under heading 4707 which pertains to the waste and scrap of paper and the exemption under Notification No. 21/2002-Cus (S. No. 152) was claimed which prescribes the concessional rate of duty for all the goods of heading 4707 imported for use in or supply to unit for manufacture of paper or paper-board, other than newsprint. The exemption is subject to condition that importer furnishes an undertaking to the Deputy/Assistant Commissioner of Customs, that the imported goods would be used for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t allege mis-declaration of description of the goods and seek confiscation of the same under Section 111(m) of the Customs Act, 1962. In our view, the ratio of this judgment of the Tribunal is squarely applicable to the facts of this case. When for the purpose of value, the department has accepted the goods to be waste paper and has not changed the value, for the purpose of classification and benefit of the exemption notification, the department cannot claim that the goods are not waste paper but are prime quality paper. The department s stand that bulk of the quantity of the goods are prime quality paper, not covered by Heading 4707 of the Tariff, is not compatible with its stand of accepting the declared transaction value of the goods whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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