Collector Of Customs vs Sun Export Corporation on 11 May, 1989
In support of this plea, the ld. Consultant relied upon the decision of Government of India in Collector Vs. Aysha Export Corporation reported in 1993 (68) ELT 265 (GOI) wherein it was held that laces in running length are not to be regarded as made upon articles being not ready for specific use but requiring stitching etc. after cutting. He argues that in the instant case also the paper is required to be cut, wound and wrapped for making artificial plants and flowers and as such are not articles which can be classified as consumer goods. The ld.Consultant further argues that Explanatory Notes under Heading No.48.23 at page 689 Vol.2 HSN distinguishes between "paper & paper board in strips or rolls of a width not exceeding 15 cm under Group 'A' whereas articles of paper under Group 'C'. He, therefore, submits that the impugned goods in strips or rolls of width below 15 cm cannot be treated/classified as articles of paper cut to size or shape under Sub-code No.482390 09.10. The ld.Consultant pleads that the lower authorities erred in considering the impugned goods as consumer goods by applying wrong criteria such as saleability, trading etc.. He submits that as per para 3.14 of the Exim Policy "consumer goods" means any consumption goods which can directly satisfy human needs without further processing. Any trade goods or raw material for manufacture are readily saleable and can be put to use to produce/manufacture some article but that does not make all trade goods in the market into consumer goods. The policy has categorically stated that the consumer goods must be consumption goods. It has distinguished between capital goods, consumables, raw materials and consumer goods.