2004 (2) TMI 591

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....ave also filed Cross-appeal No. C/173/2002 against the same order seeking value enhancement and collection of higher amount of duty than what has been confirmed by the Commissioner. 2. The party and other appellants have challenged the order of the Commissioner whereby the capital goods were held liable for confiscation and consequentially the duty demands were confirmed and penalties imposed. 3. The dispute emanates from three show cause notices issued to the party covering import of goods declared as "synthetic waste". The goods were claimed for duty free clearance in terms of Import Export Pass Book. Since only "synthetic waste" was permitted to be cleared duty free under the pass book, the imported goods, having been hel....

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....ty Chief Chemist, Madras also confirms that the material is waste. These reports, notwithstanding, the Commissioner proceeded to hold that the goods are "good quality" fibre/tow. The sole point for levelling allegation of mis-declaration against the importer was the test report from Deputy Chief Chemist of the CRCL, New Delhi. On disputing the test result arrived at by the CRCL, New Delhi, on importer's request, samples were drawn afresh and sent to SASMIRA, Bombay for testing, which is an approved private laboratory. The test report from the SASMIRA also confirms the goods to be "waste". Similarly, BTRA Test House, Bombay and test report from Madras Revenue Control Laboratory, confirm the goods to be waste. Further samples were sent to oth....

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....e to a positive finding to the effect that the imported goods are not synthetic waste but goods quality or virgin quality material, such as synthetic fibre or tow. Even by reaching a conclusion that it is not possible to classify the material as waste, the same does not mean that, there is a positive finding that, the goods are other than waste. At best, it can only mean, that it is doubtful that the goods may not be waste and in situation of such doubt, it has been held by the Courts that, the benefit must go to the importer. 9. However, as we have noted that, the predominant findings emerging out of the test reports of various independent laboratories which are dedicated for testing textile materials, as also from the laboratory o....