2001 (1) TMI 620

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....that the appellant had sought clearance of Nylon Tricot Flocking Fabrics, valued at Rs. 11,03,465.00 on 14-10-1998 declaring as Insole Sheet, claiming benefit of CN 23/98 Sl. No. 108, List 3A, Sl. No. 3 at concessional rate of duty; at 20% basic customs duty as against merit rate of 40%. Under these heading goods such as Insole, Midsole and parts thereof for leather industry; are eligible for concessional rate of basic customs duty at 20% as against 40%. Subject; item Nylon Tricot Flock fabric is a product having multiple use. Whether it can be used as insole, midsole, in leather industry; has been debatable issue for years. The practice being followed this customs house like other custom house was to extend the benefit of Notification No. ....

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....rietor of Appellant Sri Madanlal Deepchand Jain was recorded. Quantified duty of Rs. 5,99,740/- was paid by Importer on 17-10-1998. Banker's cheque for Rs. 2,74,297.00 towards differential duty was also paid by Sri Jain in subject B/E, (which was assessed to duty at 20% + 5% + 18% + 5% + 0.05%). Show cause notice was issued on 16-4-1999 under Sections 124 and 28 of Customs Act to the importer to show cause to Commissioner of Customs (Import), New Customs House, Mumbai, as to why duty short paid of Rs. 2,74,297.00 should not be demanded along with interest under Section 28AB of Customs Act, and paid during investigation should not be adjusted towards the liability, and seized goods valued at Rs. 11,14,500/- should not be confiscated under Se....

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.... dated 29-10-1998 stating that Nylon Tricot Flock fabric is a regular item being allowed clearance by Mumbai customs, and there is no irregularity into present Import, and Bill of Entry for home consumption dated 15-10-1998 for Insole sheet (Nylon Tricot Flocking) of 15007 Metres in Sixty cartons, and Invoice for the same dated 10-9-1998, and the Notification No. 23/98-Cus. dated 2-6-1998 at Serial No. 108 that "the following goods for use in leather industries, namely (1) parts, consumables, and other items specified in List 3A - (item No. 3 - Insoles or Midsoles and sheet thereafter), (2) Other parts, consumables and items specified in List 3(B), falling under Chapter 64 or any other chapter with standard rate 20% each for other categorie....

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....Midsoles sheets therefor is mentioned. Board Circular No. 74/98-Cus., dated 6-10-1998 is also perused. 1997 (93) E.L.T. 6 (S.C.) in Collector of Customs, Bombay v. Handicraft Exports, Notificatoin No. 29/79-Cus., dated 10-2-1979 for Buckles and other embellishment for footwear used in leather industry is considered. 1998 (99) E.L.T. 488 (S.C.) in the case of Collector of Customs, Bombay v. Pecific Exports Notificaton No. 224/85-Cus., dated 9-7-1995 for the goods imported Sodium Lauryl Sulphate having used in leather Industry and could also be used as emulsifier in synthetic fat liquouring compositions - importer only a trader - He should adduce evidence to show that the goods imported were meant for use in leather industry, is considered. A....

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....d giving false assurance to extract such statement, with any document in the nature of complaint to superiors of the officer who has recorded the statement. In the absence of it, the said explanation can only be termed as face saving device. It cannot be accepted. The contention of the appellant about the interpretation of the word - "for use" - in the notification in the light of Supreme Court's judgment relied on, to mean as - "capable of being used" - even if accepted, the appellant has to show it to get benefit of notification, which is not done. Appellant, being only a trader, and supplier of goods involved for value for different purposes, other than leather industry of footwear, has to show by way of supporting evidence of manufactur....