TaxTMI 
TaxTMI 
1988 (3) TMI 193
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....try filed by each of them as "premutilated synthetic rags" or "completely premutilated synthetic rags" as per invoice attached. The importers/appellants herein claimed their import under OGL as listed against S. No. 418, List 8, Part I, Appendix 6 of the relevant Import Policy for April 1985-March 1988. The said serial number at page 197 of the said Policy is reproduced below :- "418. Woollen rags/synthetic rags/shoddy wool in completely premutilated form only." Condition No. 37 (at page 168 of the said Policy) further governing the import of such rags under OGL is also reproduced below :- "(37). (i) Import of/woollen rags/shoddy wool/synthetic rags will be allowed onJy when these are imported in completely pre-mutilated condition.....
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....ieces without any further mutilation. The other bales were examined prima-facie and similar goods were found in them." (Reverse of Bill of Entry). ' 4th appellant : .....The entire goods consist of synthetic rags cut into 2 or 3 pieces but the same were not in completely pre-mutilated condition." In view of the foregoing state of facts, the department contends that the goods do not satisfy Condition No. 37 of OGL of April 1985 March, 1988 Policy in asmuch as these are not "completely pre-mutilated". 5. The appellants on the other hand contend that no standard of mutilation has been laid down in ITC Policy 1985-88 to indicate as to what is meant by the 'expression "completely pre-mutilated." The department is going on its own ....
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....unjab Government) have been relied upon. 7. Both the learned consultant and the advocate, appearing for the appellants has taken support from West Regional Bench Order No. 997-998/86-NRB, dt. 22.8.87 in the case of Subhash Woollen Mills v. C.C. Bombay which deals with the identical issue i.e. interpretation of the expression "completely premutilated" occurring in the ITC Policy 1985-88. According to this order of the W.R.B., since (i) the expression "completely pre-mutilated" in the ITC Policy is not defined, (ii) no evidence of standard of mutilation has been adduced by the department, (iii) the finding that "mutilation is not proper" is vague, (iv) the appellants are actual users and (v) the appellants therein requested the Collector t....
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....he appellants without ascertaining the proper market price, margin of profit if any, without taking into account the fact that the appellants are actual-users duly registered with the Director of Industries and without any regard to the past practice. 11. Learned JDR, appearing for the department has re-iterated the findings of the adjudicating authorities. He has also pointed out that Condition No. 37 appearing in Appendix 6(OGL) in 1985-88 ITC Policy did not occur in earlier Policies. Therefore, the present Policy has to be interpreted on its own without considering the practice during earlier policy periods. 12. We have carefully considered the pleas advanced on behalf of all the appellants and those on behalf of the department. ....
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....the respondent therein are skelp or strip.-The Court has ruled in that case: "Since the duties on strip and skelp are not the same it is absolutely necessary to'' define the word 'skelp' so that there can be no doubt or confusion in the mind either of taxing authority or of the tax payer with regard to the tax liability qua skelp as opposed to strip". This principle squarely applies in the instant cases, 14. Factual examination reports, shorn of the expression of opinion of the examining officers, indicate that goods in the first two appellants cases are synthetic garments cut into 2,3,4 pieces or in two pieces wholly available. The fact that these are 'rags' as declared in the Bills of Entry has not been disputed because there is neithe....