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TMI Blog1992 (1) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... of the second mentioned Act. TABLE Sl. No. Description of Goods 1. Penetrators. 2. Felt sleeves. . 3. Stamping foils 3. There are 24 items for exemption given under the aforesaid table head "Description of goods", but it is not necessary to set out the same as the benefit is claimed only for stamping foils. 4. The case of the Writ Petitioner is that stamping foils were imported from Germany by various manufacturers engaged in the leather industry and that show cause notices were issued to all for the purpose of claiming full duty and for the purpose of removing those imported consignments from the beneficial purview of the aforesaid notification. As the show cause notices were served to various importers, the usual procedure of cyclostyling a form was adopted on the part of the respondents and the differences in detail as to the different importers were filled in as applicable. I do not find anything wrong with the employment of cyclostyled notice as it has not been shown before me that any filing pf the blanks with regard to the Writ Petitioner was either wrong in law or made pursuant to any non-application o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the release of the goods on the next date of hearing. All parties to act on a signed copy of the minutes of this order on the usual undertaking". 9. Pursuant to the said order, the Collector of Customs has in fact heard the matter and passed an order. A photostat copy of the order, produced on the part of the respondents, has been looked into by this Court and I direct that the said copy be counter- signed by the Court Officer and kept on the records of these two writ matters. 10. The ordering portion of the said order of the Collector of Customs is as follows :- " Having regard to the facts and circumstances of the case, stamping foils (Luxor Special Alufin PVC) valued at Rs. 2,09,391.30 are ordered to be confiscated under Sec. 111(d) of C.A. '62. The importer is however given an option to redeem the goods on payment of a fine of Rs. 1,25,000.00 within one month of receipt of this order. It is further held that the goods (Luxor Special Alufin PVC) will not be eligible for the benefit of exemption under Notification 224/85-Cus., dated 9-7-1985. I also .order that goods of the specification "Colorit-V" shall be released allowing the benefit of Notification No. 224/85-Cus. agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter the ordering portion of the Additional Collector of Customs states that the goods of the specification 'Colorit-V shall be released but that the goods of the specification "Luxor Special Alufin PVC" shall not qualify for the exemption notification quoted above. 16. There is no question of the writ petitioners not being engaged in leather trade. The order of the Additional Collector proceeds on the basis that the "Colorit-V" materials would be released to the writ petitioner and that order could not have been passed in case there was any doubt about the writ petitioner not being engaged in leather trade at all. 17. The point is how the show cause notice and the order into which the show cause notice has now merged are today to be dealt with regard to the other materials being "Luxor Special Alufin PVC". 18. The materials that have been relied upon in the aforesaid order of the Additional Collector are also annexed to the writ petition. The invoices have been relied upon and the manfuacturer's literature has been relied upon to determine whether the imported goods were intended for use in the leather industry. 19. I am of the opinion that though the procedure of an end po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecial Alufin PVC" and 'Colorit V. "Luxor Special Alufin PVC" are not indicated for use in leather industry as per catalogue. It is observed that PVC grade is/intended for use 'for soft PVC coated materials and rigid plastics'. 24. As aforesaid, the goods under specification 'Colorit V have been released. This appears to be a result which is not explained by any express supporting reason. 25. There are, however, four important factors which persuade me to hold that the order must be struck down. 26. The first of these factors is that the invoice in these matters categorically stated that the goods are most suitable for use in leather industry. Why the manufacturer's declaration in the invoice should not be relied upon at all is not even considered in the order dated 19th February 1991. That would make the order liable to attack on the ground of it having been passed without consideration of relevant material. 27. The next point of importance is that in the manufacturer's catalogue, it has been stared (in page 40 of the writ petition in matter No. 2746 of 1990) that the Luxor and Alufin foils are utilised on a wide scale in nearly all industries and that the coloured lacquer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacturer's catalogue mentions as suitable for use in leather industry several specification numbers as would appear from page 45 of the annexures to the writ petition in matter No. 2746. Several of these numbers tally with the numbers mentioned in the show cause notice itself at page 37 of the aforesaid writ. Practically all the other numbers are to be found categorised as suitable for book binding in the manufacturer's catalogue. The deciding authority has given no reason why the specification numbers actually mentioned as suitable for leather industry were not being imported by the writ petitioner for use in their leather industry. Nor is any decision given that the specification numbers mentioned as suitable for book binding cannot be used for the leather industry because of any particular technical problem in the matter. The mind of the deciding authority was not addressed to the details at all. By reason of such non-application of mind to these necessary details, the decision in the matter becomes liable to attack. 30. The fear of the authorities appears to be that the imported materials would not be used for leather industry but would be sold on to other consumers. Un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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