Tribunal upholds confiscation of imported goods as not qualifying for import under specific policy

The Tribunal upheld the confiscation of imported goods classified as strips of woven fabrics under Serial No. 44 of the Import-Export Policy, 1988-91, necessitating an additional license for importation. The goods were confiscated under Sec. 111(d) of the Customs Act, 1962, as they did not qualify as labels for affixing on garments. Despite the appellants' arguments, the Tribunal determined that the goods required further processing to become labels and were not eligible for import under the Open General License (OGL). The appeal was dismissed, but the appellants were granted some relief regarding the redemption fine due to their Small Scale Industry (SSI) status.

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Issues:
- Classification of imported goods under the Import-Export Policy, 1988-91.
- Confiscation of goods under Sec. 111(d) of the Customs Act, 1962.
- Applicability of OGL and additional license requirements for imported goods.

Classification of Imported Goods:
The appellants imported goods described as "labels imprinted in rolls" under an additional license, claiming they fell under OGL and Appx. 6, List 8, Part I of the Import-Export Policy, 1988-91. However, upon inspection, it was found that the goods were strips of woven fabrics in running length, falling under Serial No. 44 of Appx. 2, Part-B of the policy. The Additional Collector held that these goods did not qualify as labels and were fabrics made from man-made fiber/yarn, necessitating an additional license for importation.

Confiscation under Customs Act:
The Additional Collector confiscated the goods under Sec. 111(d) of the Customs Act, 1962, as they were deemed to be strips of woven fabrics and not labels for affixing on garments. The charge of misdeclaration under Sec. 111(m) was dropped. The appellants argued that the goods were declared as being in rolls, not in running length, and contended that strips of fabrics should be considered under OGL, Appx. 6, List-8. However, the Tribunal upheld the confiscation under Sec. 111(d) due to the nature of the imported goods as strips of woven fabrics.

Applicability of OGL and Additional License:
The Tribunal determined that the goods imported as "labels unprinted in rolls" were actually strips of woven fabrics in running length, requiring further processing to become labels. As such, they were classified as fabrics under Serial No. 44 of Appx. 2, Part-B of the policy, not qualifying for import under OGL. The Tribunal reduced the redemption fine imposed on the appellants, considering them a Small Scale Industry (SSI) unit, but upheld the confiscation of the goods under Sec. 111(d) of the Customs Act, 1962. The appeal was dismissed, with the appellants granted consequential reliefs.

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