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TMI Blog1988 (4) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... oner company under bills of entry annexed to this petition as Exs. 'E-1', 'E-2', 'E-3' and 'F'. After the petition was filed, the order giving reasons for the confiscation and the imposition of penalty was passed and by an amendment to the petition, challenge was included to the said order of confiscation and imposition of penalty. The impugned order, which is dated 9th of November, 1981, has been annexed as Ex. 'N' to this petition. 2. As already mentioned above, the petitioners are licensed to manufacture polyester filament yarn. In June 1981, the petitioners entered into a contract with a firm in Taiwan for the purchase of Partially Oriented Yarn, hereinafter referred to as "POY" for the sake of brevity. This contract was entered into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent suitable for texturising POY and that the petitioner company had been manufacturing texturised polyester yarn. Obviously, therefore, the Textile Commissioner's office was informed by the petitioner company that it was manufacturing texturised polyester yarn and on that basis this letter was given by the said office. 4. Pursuant to certain queries which had been raised by the Scrutiny Appraiser, the petitioner company wrote a letter dated 15th of October, 1981 to the Assistant Collector of Customs, Appraising Department, wherein the circumstances under which the petitioner company imported POY were detailed. After taking this into consideration, the Assistant Collector of Customs confiscated the goods, but allowed the same to be redeem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... those included in Appendices 3, 5, 8, 9 and 15. That POY could be raw-material can be safely accepted for the industrial units which actually use the same for manufacturing something out of the said raw-material. Mr. Bharucha also invited my attention to the Press Note issued on 18th of July, 1981 by the Government of India. Since considerable argument is based upon this Press Note, the necessary relevant parts of the same ought to be reproduced at this stage :- "2. So far only such industrial undertakings, including textile mills which had the facility of their own Draw Texturising machines were treated as actual users for the registration of import contracts for POY 3. This matter has since been revised in the light of .the represent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and the like, an item to be found in Item No. 19(7) in the First Schedule to the Industries (Development and Regulation) Act. Since POY can be utilised and in fact utilised by the petitioner for the manufacture of filament yarn for which indisputably it has been licensed, there is no reason to hold that the petitioner is not entitled to import POY as an actual user. This is so especially because the Press Note itself says that the people who have their own draw texturising machines were entitled to import the same as actual users. 8. The Assistant Collector of Customs, in his order, has noted these facts, but has pointed out that the petitioner was registered under Item No. 19(7) of the First Schedule to the Industries (Development and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, the petitioner was not entitled to import POY or any other filament yarn. This is the reply which has been given by Mr. Bulchandani, which I accept. The simple answer to the contention raised on behalf of the petitioner is that the petitioner is not entitled to import POY for the manufacture of the yarn for which it holds an industrial licence. POY is admittedly a filament yarn. The petitioner is admittedly licensed to manufacture polyester filament yarn. It cannot be seen how the petitioner could be heard to say that it is entitled to import something as an actual user which it is actually licensed to manufacture. 10. This petition is not affected by the argument advanced by Mr. Bharucha that the petitioner has a draw texturising -ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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