TaxTMI 
TaxTMI 
2001 (12) TMI 648
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....department chemical lab but also for the following reasons : 9. In order to find out the type of dye and name of the manufacturer of similar/identical dyes, representative samples of the subject consignment which were drawn at CWC, Chitlapakkam, on 16-11-92 were sent to different laboratories and they were requested to do chemical analysis of the samples to ascertain the name of the dye, substrate dyable, colour index number, name of the manufacturer of similar/identical dyes and the unit price. Following were the gist of the reports received. (i) M/s. Jaysynth Dyechem Ltd., Bombay in their reports dated 2-11-92 and 1-12-92 had stated that the goods were disperse dyes and that they were not used in leather industry, but used for nylon and polyester. They had also stated that the imported dyes could be either FORON BLUE SR or DISPERSE BLUE 7 which could not be used for dyeing leather and that both were very expensive. (ii) M/s. Colourchem Ltd., Bombay, agents of M/s. Hoechst, Germany, had in their report dated 18-12-92 stated that the aforesaid dye was similar to DISPERSE BLUE 354 manufactured by M/s. Sandoz, ....
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....sed in polyester, nylon, cellulose diacetate, cellulose triacetate and acrylic fibres. As per the usage classification of dyes at page 170 of the said book, acid dyes, direct dyes, Mordant dyes were used on leather whereas Disperse Dyes were used on polyester, polyamide, cellulose, acetate, acrylic and plastics. (ii) With reference to the specific application of the subject goods FORON BRILLIANT BLUE SRK of colour index No. DISPERSE BLUE 354, the substrate dyable was polyester and tri-acetate and not leather as per page No. 8105 of Colour Index International, 3rd Edition (3rd Revision) (1987), Volume 8 by the Society of Dyers and Colourists, American Association of Textiles Chemists and Colourists. 12. M/s. Sanmark Business Services, the canvassing agents in India for M/s. Sandoz, Switzerland in their letter dated 24-12-92 had stated that the Unit price of FORON BRILLIANT BLUE SRK (DISPERSE BLUE 354) was SWF. 77.25 per kg for import of more than one tone quantity. This dye was imported by textile manufacturers. M/s. Garden Silk Mills Ltd. had imported 1,000 kgs of FORON BRILLIANT BLUE SRK (DISPERSE BLUE 354) at the unit price of 77.256 SWF per kg.....
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....pigments was enhanced from 450 kgs to 9899 kgs which was more by nearly 22 times, the original quantity whereas the CIF value of the licence was enchanced from US $ 40090.48 to US $ 95,025 and the FOB value of export obligation was increased from Rs. 25 lakhs to Rs. 50.25 lakhs only. It was observed that the quantities of dyes permitted for import as per the amendment slip is exhorbitant and manifold in comparison with the norms prescribed. Scrutiny of file F. No. 04/80/040/00822/AM. 92 relating to the issuance of advance licence by the office of JCCI & E, Madras revealed that M/s. Ejaz filed an application on 29-4-92 under para 343 of the Hand Book of Procedures for 1990-93 for enhancement of CIF value of the licence claiming that the prices of inputs and freight have increased and because of devaluation of rupee, the Indian equivalent of CIF value had also increased. It was to be noted that under the said para 343, the licensing authorities may enhance the CIF value of the licence in the case of higher freight on upward variation in exchange rate of increase in the cost of input allowed for import provided the FOB value of export obligation prescribed was also correspondingly enh....
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....stitutions/laboratories which have tested the dye including M/s. Sandoz (India) who are the local manufacturers of Sandoz, Switzerland products have ascertained that the dye under import is identical to FORON BRILLIANT BLUE SRK manufactured by M/s. Sandoz, Switzerland; (iii) the technical authorities and testing houses, commercial houses who market disperse dyes and manufacturers of disperse dyes have confirmed that this disperse dye is not for use in leather industry. The literature on the product quoted earlier in this notice also states the same and M/s. Sandoz, Switzerland, the manufacturers of FORON BRILLIANT BLUE SRK has not recommended this dye for dyeing of leather; (iv) under exemption Notification (DEEC Scheme) No. 159/90, only materials 'being materials required to be imported, for the purpose of manufacture of products' are eligible for exemption from Customs duty. As the dye under import is not required for use in leather industry, Ejaz, who hold DEEC import licence and book with obligation to export leather goods, is not eligible to import the said dye. Their claim is a wilful mis-statement and mis-representation; (v) ....
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....inst Customs Notification Nos. 59/90 and 122/92; (ix) Sanmark Business Services, canvassing agents of M/s. Sandoz had mentioned that the value of FORON BRILLIANT BLUE SRK (which is identical to the subject consignment of dye) as SWF 77.25 per kg as against US $ 7.25 per kg declared in the invoice. Contemporaneous import of FORON BRILLIANT BLUE SRK was effected by M/s. Garden Silk Mills at SWF 77.256 per kg at Bombay Port. The value declared by Ejaz was a gross mis-declaration and the correct assessable value for the subject consignment under seizure was liable to be fixed at SWF 77,256 under Rule 8 of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, and a duty of Rs. 34,16,031/- was chargeable thereon; and (x) As the imported had wilfully misstated the goods as to its nature and value as aforesaid, suppressed the fact that they were textiles dye and colluded with Shri M. Gopinath of JCCI & E office in getting amendment for enhanced quantity unauthorisedly and fraudulently and in a manner contrary to the provisions of the DEEC Scheme, the extended period of 'five years' prescribed under Proviso ....
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.... 100.3 setting aside seizure of consignment and grant of benefit of the notification and dropped the charge of imposition of penalty, etc. The finding in Order-in-Original No. 22/95 pertains to import of Sulphur Bright Green and in this case the department sent the samples to private lab namely M/s. Colour Chem Ltd. in view of the fact that the department had no facility. M/s. Colour Chem Ltd. gave the report on 4-12-92 stating that the sample was found to be Sulphur Dye Stuff and it could mainly dye cotton material and not a leather dye. Therefore, the allegation was brought following that the imported material does not satisfy the term of the notification which grants benefit to dyes used for leather. However, the Commissioner after examining the matter dropped the proceedings. 6. The Revenue in this appeal contend that the Commissioner has not examined the test results of M/s. Jayant Dye Chem Ltd., Bombay, M/s. Colour Chem Ltd., Bombay and M/s. United Bleachem Ltd., Mettupalayam and M/s. Sandoz, India. He has only relied on the importers report obtained from Central Leather Research Institute (CLRI) and the samples were not drawn in the presence of the department officia....