Imported Goods Classified as Waste Paper for Duty Concession

ASV PAPER MILLS LTD. Versus COLLECTOR OF CUSTOMS

ASV PAPER MILLS LTD. Versus COLLECTOR OF CUSTOMS - 1989 (43) E.L.T. 140 (Tribunal) Issues: Classification of imported goods as waste paper for duty concession under Customs Notification No. 234/79, valuation of goods, request for detention certificate for demurrage relief.

Classification of Imported Goods: The case involved the import of white waste paper from Hong Kong by the appellants, which was found to contain plain white paper and cut sizes of art paper. Customs authorities detained a portion of the consignment for not qualifying as waste paper under the Import Control Law. The Collector's order directed the release of goods subject to an undertaking for pulp-making use, denied duty concession under Notification No. 234/79, and fixed the assessable value at Rs. 30,000. The appellants appealed against this order, disputing the classification of goods as not waste paper.

Interpretation of Customs Heading and Notification: The main issue was whether the imported goods qualified as waste paper for duty-free entry under Heading No. 47.02 and Customs Notification No. 234/79. The appellants argued that the goods should be considered waste paper based on the wording of the heading and notification. The Customs Cooperation Council Nomenclature clarified that waste paper included various materials like shavings, clippings, old newspapers, etc., used for pulp making. The Tribunal found that even odd-sized cuttings could be classified as waste paper, especially if extracted from bales and not in regular printing sizes.

Decision and Direction: The Tribunal held that the subject goods should be deemed waste paper eligible for duty concession under Notification No. 234/79. Consequently, the goods were directed to be released upon execution of the required bond. The Tribunal did not delve into the valuation of goods due to the classification decision.

Request for Detention Certificate: The appellants requested a mention about issuing a detention certificate for demurrage relief. The Tribunal clarified that it lacked the authority to direct the issuance of such a certificate but suggested that the customs authorities consider the case for issuing one based on the circumstances.

This judgment primarily focused on the classification of imported goods as waste paper for duty concession under the relevant Customs Notification. The Tribunal's interpretation of the Customs Heading and Notification led to the decision in favor of the appellants, allowing the release of goods upon bond execution. Additionally, the Tribunal addressed the request for a detention certificate for demurrage relief, highlighting its inability to issue such directives but suggesting consideration by customs authorities.