1987 (8) TMI 186 - AT - Central Excise

Tribunal allows appeal on newsprint classification, upholds remand order.

The tribunal allowed the appeals for a remand to determine if the confiscated newsprint qualified as waste newsprint within permissible limits for sale. ... Confiscation Issues:1. Confiscation of imported newsprint for violation of conditions under Import (Control) Order, 1955.2. Interpretation of statutory provisions regarding confiscation of goods under Section 111(o) of the Customs Act.3. Determination of whether seized newsprint qualifies as waste newsprint within permissible limits for sale.Detailed Analysis:Issue 1: The case involved the confiscation of imported newsprint by Customs and Central Excise Officers due to alleged violations of conditions under the Import (Control) Order, 1955. The original adjudicating authority held that the newsprint was used for purposes other than allowed by the canalised agency, leading to liability for confiscation under Section 111(o) of the Customs Act. The authority imposed penalties and confirmed the confiscation order, which was upheld by the Collector of Customs (Appeals).Issue 2: The appellants argued that the breach of a condition of sale of newsprint after importation did not constitute a breach of the Import (Control) Order, 1955, citing a Supreme Court judgment. However, the tribunal disagreed, emphasizing the specific provisions of Clause 10B of the Order, which mandate the proper use of imported goods as declared during allotment or distribution. The tribunal distinguished the case from the Supreme Court judgment, highlighting the different statutory contexts and the introduction of Section 111(o) in the Customs Act to prevent misuse of exemptions.Issue 3: Another contention raised was whether the seized newsprint qualified as waste newsprint within permissible limits for sale. The appellants argued that the waste sold was covered within the 10% limit authorized under the Newsprint Policy, citing statements and Public Notices. The tribunal noted discrepancies in the adjudicating authority's findings regarding the nature of the seized goods, particularly the presence of full reels. It directed a reexamination to determine if the seized goods constituted waste newsprint and if the quantities sold and remaining adhered to the permissible limits for sale.In conclusion, the tribunal allowed the appeals for a remand to conduct a fresh adjudication on whether the confiscated newsprint met the criteria for waste newsprint within permissible limits. The cross-objections were disposed of accordingly, maintaining the remand order.