TaxTMI 
TaxTMI 
1999 (10) TMI 360
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....Director. 2. The common Advocate for the two appellants explains that in his order the Commissioner has found that the yarn was made from waste fibre and not as claimed by the exporter from virgin polyester fibre. He says that the sole evidence relied upon, opinion of the Silk & Art Silk Mills Industries Research Association (SASMIRA) is unreliable. Ms. A. Kaplash, Dy. Director of SASMIRA who was cross-examined with regard to the certificate given, had stated to another exporter that it was not possible to technically distinguish between yarn from virgin fibre and yarn from waste fibre in view of the process to which fibre is subjected during spinning. He next contends that in any event, the goods were not liable to confiscation. Clau....
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....contract were for yarn made of virgin fibre. The applicability of Section 3(3) was not an issue before the Tribunal in Badriprasad & Sons v. C.C.E. The statement of the Managing Director and others shows that they had knowledge of the use of the waste fibre in the spinning of the yarn exported. Had the attempt gone unchecked it that appellant would have wrongly benefited to the extent of Rs. 30 lakhs. 4. It has not been established to our satisfaction that there is insufficient material to sustain the charge that waste fibre was used in the manufacture of the goods. The seven test reports, one for a sample from each consignment have not been included in the appeal. A copy of one such report (No. 51/85) was produced before us. The repo....
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.... sample, and the imperfection, there is not sufficient reason to say that the material contained in the report was not waste. 5. This is in fact confirmed by the appellant's employees, Managing Director and President. The Managing Director of the company has said that waste fibre might have been used in the manufacture of good quality yarn. Mangal the President says that waste yarn was used for the export quality yarn. The spinning master says that fibre made from waste fibre is hardly distinguishable from fibre made from fresh raw material. It is thus clear that technically and in the trade, the waste fibre is used to make yarn of high quality and was so used in the appellant's factory. Hence it is difficult to say that waste fibre w....