TaxTMI 
TaxTMI 
TaxTMI 
2014 (10) TMI 229
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....ring unit Registered and established at SEZ., Surat under LOP No,. KFTZ/IA/1679/97/5926 dtd 15.10.1997 was allowed to import Plastic Waste and Scrap subject to DGFT PN No.392(PN)/92-97 dtd 1.1.97 and export the finished products such as all type of Plastic Bags, Household Items and Plastics, Granules, shredding, Grinding, piece crushing sheets, extruded and moulded articles. The appellant No.1 filed Bill of Entry No. 15/02-03 dtd 6.5.02 for import of Mixed Plastic Scrap generated from manufacturing process under CTH 3915.90. The goods were examined and samples were sent for testing to Central Excise & Customs Laboratory, Vadodara. The test result showed that the import goods were 'Carpet of which pile are made of Polyamide Yarn. These yarns....
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.... and requested to decide the matter. The Adjudicating Authority vide Order in Original No. 25/Jt.Commr/2008 dtd 31/12.2003 passed of the following order: * Denied the benefit of exemption Notification No,. 137/2000-Cus dtd 19.10.2000 while classifying the imported goods under CTH 5702.32 chargeable to duty as leviable at time of import; * 8945 sq mtrs of used and defective Carpet v/a Rs. 8,76,610/- under seizure were confiscated u/s 111(d), (m), (n) and (o) of the Customs Act 1962 with option to redeem the goods on payment of fine of Rs. 1,00,000/-. * Confirmed demand of customs duty Rs. 4,98,855/- u/s 28(1) of the Customs Act 1962; * Imposed penalty of Rs. 4,98,855/- on appellant No.1 u/s 114A of the Customs Act 1962; * Imposed person....
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....that the appellant had imported the goods for the purpose of converting them into plastic granules and re-export to the person. He would draw our attention to the certificate issued by such exporter. It is his further submission that the appellant being a 100% EOU, no duty liability arises and the seized goods are still lying with the appellant despite their being communication from the appellant to take back such goods. He would rely upon the decision of the Tribunal in the case of Collector of Customs vs. East West Exporter 1991(52) ELT. 66 (Tri.) for the proposition a chemical examiner has to give only his findings and not enter into dialogue expressing the opinion of classification of goods. He also relied upon the judgement of th....
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....OP as granted by DGFT authorities was in operation. 8. We are of the view that the impugned order is liable to set aside for more than one reasons. - Firstly, the First Appellate Authority has come to the conclusion that the products imported by the appellant falls under the category of 5702.32 based on the Chemical Examiner report which reads as under: Carpet of which pile are made of Polyamide Yarn. These yarns are woven and woven based fabric made of Polypropylene Yarn and adhesioned on woven fabric of Jute/Polypropylene. It is not a plastic scrap. The article is not a plastic material therefore, the Public Notice No. 392(PN)92-97 dtd 1.1.2007 i....
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....o the main appellant is post processed industrial material from manufacturing process which is rejected. Such a certificate is accepted by the First Appellate Authority to come to a conclusion that the Carpet is sent to appellant for conversion into granule form for reuse in USA. If the certificate given by the exporter is accepted and the appellant being a unit situated in a SEZ, the question of duty liability, if any, may not arise. Thirdly, on perusal of the LOP No. KFTZ/IA/ 1679/97/ 5926 dtd 15.10.1997 we find that the said LOP permits the appellant to import various plastic materials for conversion and re-exporting. The said LOP also indicates that they can import any other category of plastic/wastes like flake, powders, pieces of irr....