TaxTMI 
TaxTMI 
1994 (10) TMI 169
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....me and claimed for assessment under Notification No. 159/60/90/CE, dated 30-3-1990, free of duty, have been confiscated by the learned lower authority for the reason that the description as set out in the licence does not cover the goods and also inasmuch as the description given by the appellant was wrong namely PVA-Binder (Resin) and that there was mis-declaration and provisions of Section 111(d) of the Customs Act, 1962 read with Section 3(2) of the Imports and Exports (Control) Act, 1947 and Section 111(m) of the Customs Act, 1962 have been invoked. The goods valued at Rs. 13,39,145/- have been allowed to be redeemed on payment of redemption fine of Rs. 1,25,000/- and penalty of Rs. 1,00,000/- has been imposed by the learned lower autho....
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.... appellant pleaded that the import of the goods was made under the Advance Licence scheme permitting the export obligations. He pleaded that the goods allowed under the import licence are Binder (Resins) for manufacture and export of finished leather. He pleaded that the appellant cleared the goods in the Bill of Entry as Binder (Resins) Polyvinyl Alcohols i.e. PVA. He pleaded that the sample was drawn from the consignment and the report of the Chemical Examiner clearly shows that goods are synthetic Resin and answer to the description of PVA. He pleaded that in this background there is no question of mis-declaration on the part of the appellant and the goods imported are PVA Resin for use as Binder for the finished leather manufacture. He ....
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....sin and find use as a binder in the manufacture of finished leather and the learned lower authority should have allowed them import against the licence produced and given consequential benefit for clearance of the goods, free of duty, under the notification as stated above. He pleaded that under the Advance Licensing Scheme for import of the goods free of duty, the licensing authorities have to be satisfied that the use of the goods has been for the finished product namely finished leather and have also to meet the export obligations and based on the Advance Licence in respect of which the duty free importation is made. He pleaded, for the satisfaction of the Customs Authorities, the appellant is prepared to execute any bond with the author....
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....lso shows the use of the goods imported for the manufacture of leather. The learned lower authority appears to have been influenced by the possible quantum of use of the material for the manufacture of the leather. We observe that while the licensing authorities have issued licences, unless there is any quantity restriction, the importation is to be allowed once it is found that the goods are covered by the licences. We observe in the present case, the appellants have established before us that the goods have been cleared under the description as set out in the licence. We therefore hold that the appellants are entitled to import the goods under the licence produced and there is no question of any mis-declaration by them as the appellants h....