Mixed wastepaper imports and prima facie misdeclaration: interim waiver of pre-deposit and stay of customs recovery granted.

Imported mixed wastepaper was prima facie treated as covered by the customs notification granting concessional duty, subject to the actual user condition, because the goods were declared under the appropriate tariff entry and were ordered against purchase orders for unsorted wastepaper. The record also reflected that mixed wastepaper may contain limited outthrows or contraries such as plastic, wood, textile, glass, metal and rubber under international standards, and the departmental circular permitted such material up to 8%. On that basis, no prima facie misdeclaration was found for interim relief, and waiver of pre-deposit with stay of recovery of customs duty and penalty was granted.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay of recovery in respect of customs duty and penalty; whether the import of mixed wastepaper attracted denial of the benefit of the customs notification on the ground of misdeclaration or unauthorised import of contraries.

Analysis: The imports were made against purchase orders for unsorted wastepaper and were declared as mixed wastepaper under the appropriate tariff entry. The goods were prima facie covered by the customs notification granting concessional duty subject to actual user condition. The record also indicated that mixed wastepaper may contain outthrows or contraries such as plastic, wood, textile, glass, metal and rubber pieces to a limited extent under international standards, and the departmental circular permitted such material up to 8% in mixed wastepaper imported into India. On these facts, no prima facie misdeclaration was made out for the purpose of interim relief.

Conclusion: The appellants were found entitled to waiver of pre-deposit and stay of recovery of the customs duty and penalty amounts.

Final Conclusion: Interim protection was granted in favour of the importer, and recovery of the adjudged duty and penalty was stayed pending disposal of the matter.

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