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TMI Blog1981 (5) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... ods and imposition of personal penalty on the importers etc. 3. Briefly stated, the facts of the case are that in terms of the Import Trade Control Policy A.M. 1973, 'Brandy Concentrate' was permissible for importation in India as per S. No. G. 2.1 (vide page 134 of ITC Policy Vol. II). On the strength of ITC licences issued in this behalf the importers imported the impugned two consignments under the description "Brandy Concentrate". On the basis of the declaration made by the importers, the consignments were assessed to duty and cleared for home consumption against the import licences produced by them. Subsequently, however on receipt of an information that what was imported and cleared through Customs was "Brandy" and not "Brandy Concentrate", the goods were seized on 5-10-1974. Show Cause Notices were issued in respect of both the consignments cleared under the Bill of Entry Cash No. 482, dated 3-4-1973 and Cash No. 5330, dated 27-4-1973. Both the Show Cause Notices were issued on 24-2-1975, requiring the importers to show cause to the Collector of Customs as to why the decisions of the Assessing Officer accepting the goods as Brandy concentrate and treating the licence produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Concentrate' which would show that they were actually negotiating for the import of 'Brandy Concentrate'. That apart, the invoice, the analysis report of M/s. P. Gibert of France the order, the confirmation, the certificate of origin, etc. clearly show that the goods were 'Brandy Concentrate'. (iii) The Brandy imported by them was not potable brandly or beverage Brandy as the strength of Brandy in question was 50 over proof whereas the maximum strength of potable brandy as per specifications of ISI was to be 250 under proof. (iv) Even if the 'Brandy Concentrate' imported by them was mixed only with water to bring its strength to 250 under proof so as to make it potable, this would not be marketable as a beverage brandy nor would be acceptable as such to any customer. (v) The presence of dry matter in the imported goods was high as compared with ISI specifications for any type of Brandy. The dry matter found in these two consignments amounted to 5.5% and 5.6% (vide T.M. Lab. 13934 13935), dated 27-3-1975 respectively whereas the dry matter in potable brandy was not to exceed 1% as per ISI specifications. 4. The Collector of Customs while passing impugned orders observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly banned as it was permissible for importation by established importers under I.T.C. Policy A.M. 1973, Vol. 1, Part IV, S. No. 84. The counsel of the applicants further drew the attention of the Bench to the ISI specifications for potable brandy in terms of which the maximum strength of potable Brandy in India should not exceed 750 proof (250 U.P.). The subject goods were having the strength of approximately 105 proof (5 over proof). This, according to the learned counsel, would make it clear that the goods imported were not potable brandy or beverage brandy. 8. The petitioners contend that in the absence of an acceptable definition of the term 'Brandy Concentrate', one has to find out what is reasonably meant and commonly understood by the said term. According to the learned counsel, the term 'Concentrate Brandy' would suggest not only over-proof brandy but a compound product being a mixture of distillates, alcoholates and natural essences. With reference to a certificate from the suppliers dated 13-8-1975 produced at the revision stage, the learned counsel pointed out that the goods were certified to be a mixture of distillates, alcoholates and natural essences being specially ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lavoured with imported 'Brandy Concentrate'. 11. Shri Engineer contended that the impugned goods would fall under category II of heading 22.09 of Customs Co-operation Council Nomenclatural which covers "Compound Alcohol Preparations" known as "Concentrated Extracts" for the manufacture of beverages. 12. Shri S.M. Shah who represented M/s. Polychem Ltd. explained that the content of dry matter found in the subject goods was considerably high and that the said dry matter was harmful to the human system. He pointed out that the maximum content of dry matter in potable brandy has been fixed by ISI at 1% whereas the said content exceeded 5% in the subject consignments. He further explained that the high esters contained in the impugned consignments of 'Brandy Concentrate' are essential characteristics of 'Brandy Concentrate'. 13. The Government of India have carefully considered the contentions of the petitioners Vis-a-vis the reasons adduced in the Collector's orders. The Government observe that 'imitation brandy' (which is made as a rule by cutting strongly flavoured brandy with distilled rectified alcohol, colouring and sweetening with caramel and cane-sugar syrup, adding small ..... X X X X Extracts X X X X X X X X Extracts X X X X
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