2001 (1) TMI 829

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....nd ground is that if his argument on the stay application is accepted, there would be nothing left in the case to be decided. The ld. JDR Shri A.K. Jain has reservations but we accept the grounds pleaded by Shri Doiphode and take up the appeal itself for final disposal after granting waiver of pre-deposit of the penalty amount of Rs. two lakhs imposed on the applicants. 2. The appellants are an EOU situated in Halol, Gujarat. They filed two Bills of Entry describing the goods as "old original synthetic hosiery rags completely premutilated". Examination showed that the goods were actually old and used serviceable hosiery garments/sweaters in unmutilated condition. The classification claimed by the importers was under Customs Tariff Hea....

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....ed to the concerned authorities of the Export Promotion Zone. He referred to the letter dated 28-6-2000 from the Dy. Development Commissioner, Kandla Free Trade Zone to the effect that attestation of list of raw materials by the Development Commissioner is not required as per Exim Policy. They take this letter to mean that the appellants were permitted to import the raw materials required by them for the manufacture of export goods without specification of the raw materials. Shri Jain showed us a letter dated 18-7-2000 from the same authority addressed to the appellants in which NOC is given to the importers on "rags" in unmutilated condition. 4. Shri Doiphode shows us a subsequent letter dated 20-12-2000. In this letter the same auth....

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.... placed by Shri Jain. This is a certificate meant for presentation to the Customs House and certifies that the importers would be an EOU and it does not in any way restrict or prohibit the importability of raw materials by an EOU. 6. We have seen the ITC (HS) classifications. The Entry at heading 630900 00 relating to the contested goods is reproduced below : "630900 00 Worn clothing and Restricted other worn articles Consumer goods - Not permitted to be imported except against a licence or in accordance with a Public Notice". 7. Shri Doiphode stated that the items were restricted and not prohibited and in terms of the aforesaid paragraph 9.8, the goods were capable of being imported. As regards the requirement to possess a l....

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....ing." This is the ground on which he finds the goods liable to confiscation. During the hearing before us, the importers had not contested this belief but established that there was no bar to their importation of worn out clothing also. They also established that the Licensing Authority was the Development Commissioner and that the permission given by such Commissioner himself acted as a licence. It was also established that worn clothings are not prohibited item but are restricted items. On this consideration, we hold that the orders of confiscation under Section 111(d) do not survive. 10. As regards the orders of confiscation under Section 111(m) Shri Jain maintains that the importers had misdeclared the goods as premutilated rags w....