Mutilation of imported plastic waste for export use prevailed over confiscation and value enhancement in mixed consignments.

Imported goods declared as plastic waste and scrap were examined where some containers contained plastic film in roll form. The Tribunal applied its earlier view that, for goods intended to be converted into granules or otherwise processed for export in an export processing zone, the proper course is full mutilation of the offending goods rather than confiscation or penal action based on misdeclaration. On the facts, the confiscation order and enhancement of value were not sustainable, and the goods were directed to be fully mutilated and exported after conversion.

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Issues: Whether confiscation of the imported goods and enhancement of their value were sustainable when the goods were declared as plastic waste and scrap but some containers contained plastic film in roll form, and whether the goods should be mutilated before export.

Analysis: The imported goods were meant for use in an export processing zone. The Tribunal followed its earlier view that where the goods are to be converted into granules or otherwise processed for export, the proper course is to ensure full mutilation of the offending goods rather than sustain confiscation or penal consequences on the footing of misdeclaration. On the facts, the order of confiscation and the valuation enhancement could not be sustained.

Conclusion: The confiscation and enhancement of value were set aside, the appeal was allowed, and the goods were directed to be fully mutilated and exported after conversion.

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