2005 (10) TMI 299

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....he appeals were heard together and are being disposed of by this common order. 2. The material facts are that M/s. Sanjeev Woollen Mills, Ludhiana is a manufacturer of blankets and other products. It obtained an advance licence under the DEEC Pass-Book Scheme. The licence permitted it to import (for export production) "synthetic waste/soft quality with predominance of acrylic staple fibre, with wide variation in denier and length containing both drawn and undrawn fibres". The present dispute is about a consignment valued around Rs. 10 lakhs (136 MT) imported on 4th March, 1991. Customs authorities allowed provisional release of the goods and thereafter, issued a show cause notice alleging that the consignment was not of fibre waste ....

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.... 170 gms. 144 gms. Cut pieces of tow 92 gms. Not present Wt. of Rovings 9 gms. Wt. of rovings 24 gms. Cut slivers having fused mass 10 gms. 28 gms. No fused mass No fused mass Wt. of white fibrous mass 2 gms. 54 gms. 17 gms. 16 gms. Wt. of off white fibreous mass containing crimped fibres Not present 8 gms. Not present 46 gms. Wt. of cut bits of white spun yarns Not present 0.3 gms Not present Not present % age composition         Acrylic 100% 96.5% 99.0% 95.2% Polyester Nil 3.5% 0.6% 1.7% Wool Nil Nil Nil 3.1% Nylon Nil Nil 0.4% Nil The Chemical Examiner also mentioned tha....

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....n that since the assessees' consignment did not definitively answer the requirement for fibres, being not of uniform length, the Customs authorities were required to treat it as waste. 6. Learned Counsel representing the Revenue has contended that the import had to conform to the licence issued and if the consignment did not satisfy the definition of waste indicated in the HSN notes, it was liable to be treated as not satisfying the description in the licence. It is his submission that the extraneous material like "'fused mass" and "fibreous mass" even most fiberable masses were not to be taken into account at all inasmuch as the licence did not permit the import of such waste. He has also contended that an exemption benefit can be ....

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.... of the samples, there was extraneous material. Thus, the consignment could not be taken up for spinning straightway. Material of different types had to be separated and spinnable fibres put together to use in spinning. The evidence being in such clear terms, we are unable to uphold the finding of the Commissioner that consignment was one of fibres and not of waste. In this view of evidence, we set aside the impugned order and hold that the consignment was required to be released without any penal action or demand of duty. 9. It is also to be noted that, even as the above controversy was raging between the importer and the Customs, the goods in dispute were subjected to manufacture and exported. DGFT authorities have also accepted t....