2005 (4) TMI 387

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....ons found concerned with the imports & sale of the imported goods to M/s. Baader Schulz Laboratories require raw material, viz various Feed Grade Vitamins, Anti-Oxidants, carriers & procure them, from Indian sources evidently imported as also import them. Accordingly, they purchased poultry Feed Supplement AV 110 from M/s. Sonam International (hereinafter referred to as Sonam). Who had imported the same. 1.2 Pursuant to an information that Sonam was importing 3rd country goods from Nepal by misdeclaration & by misuse of Notification 40/02, 29/96 DRI - Lucknow Officers initiated an inquiry. 89 bags containing 2,225 kgs of Poultry Feed Supplement purchased from Sonam was seized at the premises of Baadar on 30-5-2005 (sic). 1.3&emsp....

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....s 360 bags 9,000 kg of feed supplement poultry AK 110. The goods have been allowed clearance after examination & getting them tested from M/s. Analytical Testing Corporation Lucknow who vide report dated 28-2-2005 reported the goods to be Vitamin E in the form of white Crystalline Assay 49.37% w/w claim 50% w/w. (b)     From the various test reported on record, it is undisputed that the goods are vitamin E not more than 49.57% adsorbed on inorganic material carriers. The reports subsequently reported Ash content is high as 42.2%. (c)     Classification of the goods as Vitamin E under Heading 29.36 of the Tariff is therefore not permissible as the HSN note thereunder stipulate an entity under to ....

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....ication 9/96-Cus., dated 22-1-1996 also cannot be upheld to call for confiscation under Section 111 of the Customs Act, 1962 nor is penalty under Section 112 of the Customs Act, 1962 is called. (g)     The goods were indisputably imported vide BE dated 1-12-2002 & classified on 21-5-2003. Reliance on invoices dated 25-3-2001 of a supplier from Germany & 16-4-2003 from a supplier on which Vitamin E was imported by the manufacturer in Nepal have been considered by the lower authorities. The invoice dated 16-4-2003 is subsequent to import vide BE 1-12-2002 in India, the same cannot be of any help to the department. However it helps the case of the importers to prove the imported goods to be manufactured product from Vita....

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.... dated 12-4-2002 stipulated manufacturing process in Nepal to be such which would result a change of four digit classification from third country of origin classification at the time of import of the raw material to Nepal.                 These conditions specifically stipulate. "...............the manufacturing process is not limited to in sufficient working or processing indicated in the illustrative list given below."           This would indicate that vitamin of 50% purity or 93 Vitamin E-Oil 93 PCT on clearance under 29.36 as imported from third country in drums, when reduced to 47.5% w/w, as found on test, i....