Waste-paper exemption under import notification allowed without physical mutilation, with end-use bond safeguarding concession use

Imported kraft waste paper bags were treated as falling within Notification No. 219/84 where they matched the described waste-paper category and were intended for the stipulated end use. The text states that physical tearing or mutilation at import was not a condition for exemption, and that the end-use bond operated as the safeguard against misuse. Foreign markings indicated that the bags were not imported as serviceable packing bags for cement use. On that basis, the goods were considered eligible for duty concession and Open General Licence clearance, and the confiscation, redemption fine and penalty were set aside under the notification subject to execution of the requisite bond.

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Issues: Whether the imported kraft waste paper bags were eligible for duty concession under Notification No. 219/84 and clearance under Open General Licence, and whether confiscation, redemption fine and penalty were justified.

Analysis: The exemption notification covered specified waste paper and waste paper board, including kraft and corrugated cutting waste, boxes and bags of all varieties, provided the goods fell within the described waste-paper category and were imported for the stipulated end use. The presence of foreign markings on the bags showed that they were not imported as serviceable packing bags for cement use. The notification did not require the goods to be torn or mutilated at import, and the end-use bond was the safeguard against misuse of the concession. The inclusion of items such as directories, cartons and newspapers also showed that physical mutilation was not a condition precedent to exemption.

Conclusion: The goods were held eligible for the duty concession and for clearance under Open General Licence. The confiscation, redemption fine and penalty were set aside, and assessment was directed under Notification No. 219/84 subject to execution of the requisite bond.

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