Customs, Excise and Gold Tribunal - Mumbai
Vaishnav Fibre Ltd. vs Commissioner Of Customs, Nhava Sheva on 12 November, 2001
JUDGMENT J.H.Joglekar, Member (T)
1. The appellants imported goods described as Waste Paper Multiwal Bags Scrap. The goods were found to be serviceable Multi Kraft Paper Bags. The Commissioner ordered their confiscation, enhance the assessable value and also charged the classification. The importers filed an appeal before the Tribunal on the ground of denial of principles of natural justice. The Tribunal remanded the matter. In denovo adjudication, the same orders were passed except for the fact that the redemption fine and penalty imposed were higher than in the first order.
2. The Tribunal's judgment in the case of CC, Mumbai v. M/s Khanna Paper Mills (P) Ltd. [1998 (24) RLT 876] was placed before the Commissioner where in identical circumstances, the Tribunal had directed that the consignment be taken to the importers' factory for pulping under the Customs supervision. The Commissioner felt that since in the cited order the goods were pornographic material, the ratio did not apply. Hence, the appeal.
3. The counsel fort the appellants, apart form citing this judgment also cites the Tribunal's judgment in the case of S.K. Metal v. CC, New Delhi [2001 (46) RLT 984.] In this judgment, the Tribunal held that where the Customs were of the impression that the goods were not scrap but were serviceable material, the goods could be cleared as scrap after proper mutilation.
4. We find that the situation in the case of M/s. Khanna Paper Mills Pvt.Ltd. applies fully to the facts of the case. We, therefore, direct that the contested goods be treated as scrap. The goods shall be transported to the factory of the appellants under the supervision of the Customs officers. The pulping of the serviceable Multi Kraft Paper Bags shall be supervised by the jurisdictional Excise Officer who will send a report to that effect to the Jurisdictional Customs Officers. All the expenses of transportation, supervision etc. shall be borne by the present appellants. The appeal is allowed in these terms with consequential relief, if any, to the appellants.
(Dictated in Court)