Customs, Excise and Gold Tribunal - Tamil Nadu
M.K. Woolen Mills vs Cc on 31 August, 2001
Equivalent citations: 2001(99)ECR275(TRI.-CHENNAI)
ORDER S.L. Peeran, Member (J)
1. The COD application pertains to supplementary appeal. Ld. Consultant submits that in the regular appeal, the prayer for early hearing has been granted and the same has been listed today for final hearing. He submits that both the appeals arise from the same order and hence in terms of Tribunal's practice, the COD in supplementary appeals be allowed.
2. Heard ld. DR.
3. The prayer for condoning the delay in filing supplementary appeal is allowed as by common order the Commissioner has disposed of two appeals and appellants have filed one appeal which is listed today for hearing. Hence both the appeals are taken up for disposal as per law. In the impugned order, passed by the Commissioner (Appeals), Chennai he has confirmed the order of confiscation of synthetic rags and granting redemption of the same on payment of redemption fine of Rs. 60,000/- in terms of Section 125 of Customs Act. He has further confirmed confiscation of used garments and imposed an RF of Rs. 15,0000/- under Section 125 of the Act. Penalty of Rs. 20,000/- imposed under Section 112(a) Customs Act has also been upheld in terms of OIO passed by the Jt. Commissioner (APPG.).
4. Ld. Consultant Shri N. Singh submits that the issue pertaining to levy of fine and penalty in respect of import of synthetic rags and used garments has already been decided by the Tribunal by Final Order No. 1850 to 1852/2000 dated 19.12.2000. The Tribunal has followed its earlier order rendered in ANZ Overseas v. CC, Chennai reported in 1998 (26) RLT 706 (CEGAT) and also the judgement rendered in Amtex Woolens v. CC, Chennai by Final Order No. 2603/98 dated 17.12.1998. In terms of these judgements, the Tribunal in International Marketing Co. and Anr. v. CC, Chennai by Final Order No. 1850 to 1852/2000 dated 19.12.2000 has held that there cannot be confiscation of synthetic rags and the confiscation has been set aside while the confiscation of used garments has been held. However, redemption fine has been ordered to be 25% of the value of old and used garments and penalty has been fixed at 5% of the value of the goods. He seeks for a similar order in both the appeals.
5. Heard ld. DR Shri A. Jayachandran who submits that Commissioner (Appeals) has noted the public notice No. 146/98 dated 19.7.1998 and has held that there is violation of said public notice. Therefore, he has held that the goods are liable for confiscation and imposition of penalty in terms of judgement rendered by the Kerala High Court in the case of R.A. Spinning Mills Pvt. Ltd. By their order dated 24.12.1999. He has not followed the judgement of Rajasthan High Court relied by the party rendered in Swastik Woolen Mills, the Commissioner has also not followed the Tribunal judgement rendered in / & K Textiles, 1999 (34) RLT 459 fixing the price at 25% of CIF value.
6. On a careful consideration of the submissions, we notice that the judgement of Rajasthan High Court has been accepted by the Tribunal and this Bench in the case of International Marketing Co. and Anr. v. CC, Chennai by final order referred to above, has also clearly looked into other judgements rendered in ANZ Overseas (supra) and Amtex Woolen Mills (supra). The Tribunal in this final order has clearly held that rags cannot be confiscated and fine cannot be imposed. It is clearly held that old & used garments are confiscable. However, fine has to be 25% of the value and penalty to be 5% of the value. Taking into consideration the Tribunal's final order rendered in International Marketing Co., we hold that imposition of RF of Rs. 60,000.- on synthetic rags is required to be set aside. We order accordingly.
7. Insofar as the order of confiscation of used garments valued at Rs. 1,14,713/- is concerned, the order of confiscation is confirmed. However, the order of fine fixed at Rs. 15,0000/-is required to be reduced to 25% of the CIF value and we hold that appellants are required to pay a redemption fine of only Rs. 30,000/- of this value. Insofar as the penalty is concerned, same is reduced from Rs. 20,000/- to Rs. 7,000/- (Rupees Seven thousand only) in terms of Tribunal judgements noted supra. The impugned order is modified to the extent indicated and appeals disposed of accordingly.
(Pronounced & dictated in open Court).