9911796707
TMI Blog1999 (9) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... .On 3rd January, 1988 the goods were physically examined and selective samples were drawn. Respondent No. 4 reported that the petitioner does not merit classification under heading 58.06. According to respondent no. 4 his case comes under Heading 59.07. A letter dated 10th March, 1988 had been received from respondent no. 4 calling upon petitioner, why his goods strip not be classified under Heading 59.07. Petitioner has challenged that notice. Learned Counsel for the petitioner submits that assessee deals inter alia in labels/badges and similar articles of textile materials. 6.The petitioner has imported from M/s. Golden State Industrial Co. Ltd., Taiwan 550 cartoons containing 26488 reels of 250 yards each of textile fabrics for the purpose of labels/badges and this material is covered by the heading 58.07 of the Customs Tariff of India. The material was sent for test in the laboratory of custom house whether it comes under the classification heading 58.06 the petitioner never claimed that it comes under heading 58.06. He claimed that it comes under heading 58.07. But it has wrongly been classified under heading 59.07. 7.The test report has not controverted the claim of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the objection raised on behalf of the revenue as to the maintainability of the writ petition." 10.The samples of the material are tested in the laboratory custom house and after test it submits its report. The relevant portion of report reads as under :- "Each of the two samples is in the form of white plain weave woven strips of width 3.4 cm and 1.5 cm respectively with shiny surface and is coated on both sides. The coating is very smooth visible to nakes eye and uniform. The base woven fabric in each case is made-up of nylon (Polymide) filament yarn. It is not provided with selvedges. Note: The two samples under reference are white shiny strip (plain weave type) is made-up of polymide (Nylon) coated on both side. Coating is very smooth and can be seen through the naked eye. The coating material (less than 10% by wt) appears to be formation other than plastic." 11.Whether unprinted labels are come within the definition of label while they are known in the commercial market as label. The similar question was considered by the Apex Court in case of Rollatainers Ltd. v. Union of India - 1994 (72) E.L.T. 793 (S.C.). The issue before their Lordships whether a printing cartons a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the nature of products and other circumstances. Therefore, the issue has to be decided with reference to facts of each case. A general test is neither advisable nor practicable. We are, therefore, of the opinion that the Tribunal was not right in concluding that the printed aluminium labels in question are not product of printing industry." 13.Mere printing of labels in all cases need not be called a manufacturing or production. That depends upon the nature of product and other circumstances. In case in hand the material which was imported known in the trade business as label. Merely the label is not printed. Its classification as label should not be denied. 14.In Atul Glass Industries Ltd. and Others v. Collector of Central Excise and Others - 1986 (25) E.L.T. 473 (S.C.). The issue before their Lordships was whether glass mirror fall under tariff item No. 23(A) of tariff item No. 68 of the First Schedule of the Central Excise insulted. In para 8 their Lordships observed as under :- "8. The test commonly applied to such cases is: How is the product identified by the class or section of people dealing with or using the product? That is a test which is attracted whenever the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ute was enacted". 17.The meaning of article or things should be taken in which it is understood in the trade. 18.If any goods is capable of being used for some other purpose that by itself does not disqualified from the benefit given to that particular goods under the notification or under any of the law. In Collector of Customs, Bombay v. Handicraft Exports - 1997 (93) E.L.T. 6 (S.C.) = (1997) 7 SCC 144 in para 2 their Lordships observed as under:- "…………In order to claim any exemption, the importer will have to show that the goods were meant to be used as embellishments for footwear. The fact that it was capable of being used for other purposes by itself will not disqualify the imported goods from the benefit given by the aforesaid notification." 19.Whether the item will come under the heading 58.07 or 59.07. Under item 58.07 the material imported is known as unprinted labels, learned Counsel for the respondent failed to show any other use of these plain weave woven strips of width 1.5 cm to 3.4 cm. 20.Sub-heading 58.07 provides and covers labels and similar articles. If it is not label in strict sense. In that case the material imported can be said similar to label. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it should be construed in favour of the subject as notification is part of a fiscal enactment. However, that is so in the event of there being a real difficulty in ascertaining the meaning of a particular enactment that the question of strictness or of liberality of construction arises. While interpreting an exemption clause, liberal interpretation should be imparted to the language thereof, provided no violence is done to the language employed. It must, however, be borne in mind that absurd results of construction should be avoided." 25.The facts are not in dispute that the petitioner has imported plain label strips described as cloth for printing. The sample of that material also produced in the Court and learned Counsel submits that there cannot be any other use of this material, except for printing the labels and in the trade market under the catalogues, these plain strips are called labels. Learned Counsel for the respondent could not pointed out any use of the material produced in the court other than the use of the plain strips for purpose of printing labels. The material is known in the trade market as labels. We do not find any justification to put that material under ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
