TaxTMI 
TaxTMI 
2021 (7) TMI 1066
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....rap paper (silicon paper and coated) vide bill of entry No.9846155, dated 06.12.2020, under Section 24 of the Customs Act, 1962 ("the Act" for brevity) under the supervision of the Customs Authorities and to allow clearance of the goods under the exemption claimed for waste paper considering certificate issued by the Approved Certification Agency by the Government of India. 4. Before the Writ Court, the Importer contended that they never sought for provisional release of the goods under Section 110 of the Act, but the third appellant had passed the order directing provisional release on execution of a bond for a sum of Rs. 34,65,334/- and production of cash security / bank guarantee for a sum of Rs. 12,12,867/- towards redemption fine and penalty and on payment of applicable duty of Rs. 9,43,411/-. 5. Further, the Importer reiterated that the goods have already been mutilated and if according to the Revenue, the goods are serviceable items, the Importer is ready to get them totally mutilated to the satisfaction of the Customs Authority and under their supervision. The Importer referred to Section 24 of the Act, which deals with power to make Rules for denaturing or mutilation of ....
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....mitted that when the prohibited goods have been concealed along with the goods freely importable with an intention to defraud the revenue, mutilation of the said goods should not be permitted under Section 24 of the Act. In support of such contention, the learned counsel referred to the decisions of the Honourable Supreme Court in the cases of Union of India vs. Madanlal Steel Industries Ltd [2001 (132) ELT 526 (SC)] and Collector of Customs, Bombay vs. Hardik Industrial Corporation [1998 (97) ELT 25 (SC)]. 10. Further, it is submitted that the question as to whether the offer for further mutilation of the goods could have been accepted would arise only in a case where the import is found to be bona fide and the matter only related to the extent of mutilation of goods, which had been imported and the Importer cannot claim the benefit of the offer to have the goods to be further mutilated to avoid confiscation. In support of such contention, reliance was placed on the decision of the Honourable Supreme Court in the case of Garg Woollen Mills (P) Ltd. vs. Addl. Collr. of Customs, New Delhi [1998 (104) ELT 306 (SC)]. 11. Further it is submitted that when the writ petition was allowe....
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....rnate relief was sought for in the said letter by stating that if the Department is not convinced, the Importer may be permitted to mutilate the consignment as envisaged under Section 24 of the Act under the Customs supervision and then may be allowed clearance with exemption from duty by applying Notification No.50/2017, dated 30.06.2017. The Importer also agreed to bear the cost of mutilation. When such was the request made by the Importer, the order dated 29.12.2020, has been passed granting provisional release by imposing very onerous conditions. 14. The learned counsel placed reliance on the decision of the Tribunal in the case of Pudumjee Agro Industries Ltd. vs. Commissioner of Customs, Pune [2007 (216) E.L.T.127 (Tri.-Mumbai)], wherein mutilation was permitted on similar facts and the said decision has become final as the appeal filed by the Revenue before the Honourable Supreme Court was dismissed in Commissioner vs. Pudumjee Agro Industries Ltd. [2015 (325) E.L.T. A152 (SC)]. 15. By placing reliance on the decision in the case of Patiala Castings Private Limited vs. Union of India [2003 (156) E.L.T.458 (P&H)], it is submitted that whenever the Revenue entertains a doubt....
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.... Import of different kinds of paper description under all the 22 tariff lines covered under ITC (HS) 4810 is "Free". b. Importers should mention correct description of paper being imported at 8 digit under ITC (HS) 4810. They are expected to clearly specify quantities of paper under each 8 digit ITC (HS) Code separately. c. If the whole imported paper consignment is without description for each category of paper it is a Stock lot. d. The Customs would check before allowing consignment where the description of imported paper matches with any/some of the 8 digit entries under ITC (HS) 4810. The Customs would not allow consignment where paper of different description are intended to be imported and are bundled together under ITC (HS) 4810 as a Stock Lot. e. In case paper proposed to be imported is not covered in any of the existing 8 digit ITC (HS) codes under ITC(HS) 4810, Trade is advised to request Department of Revenue for the creation of a new tariff line with proper justification." 21. In terms of the above clarification read along with Notification No.45, dated 31.01.2020, the import of different kinds of paper description under all the 22 tariff lines covered under IT....
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....made on behalf of the Importer is that the request made by the Importer was for mutilation vide Letter dated 23.12.2020 and not for provisional release. But, the third appellant passed the Order dated 29.12.2020 permitting provisional release of the cargo and imposing onerous conditions. The Letter dated 23.12.2020 was addressed to the first appellant, wherein the Importer would state that they had filed a bill of entry for clearance of mixed wet strength scrap paper (silicon paper and coated) falling under CTH 47079090, imported from Singapore. It is further stated that they are manufacturers of "pulp sheets" and the item is the primary raw material. It is submitted that the goods imported are not stock lot, but waste paper only and they are actual user and not a trader. Further, the Importer referred to the certificate issued by the Approved Agency certifying that the consignment is actually waster paper as per international acceptable parameters for such material. Therefore, the Importer requested the first appellant to permit clearance of the goods by taking note of the certification by Inspecting Agency (at the load port). 24. The Importer made an alternate prayer before the ....
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....rities in the show-cause notice, which has now been issued to the Importer. The allegation is one of concealing the prohibited item with the items, which are freely imported. Therefore, the alternate request made by the Importer for mutilation cannot be treated to be a bona fide claim. It is too early to come to a conclusion whether there is a positive evidence of mis-declaration, because the show-cause notice is yet to be adjudicated. Therefore, as on date, the Revenue is of the prima facie view that it is a clear case of mis-declaration and the import has to be treated as a stock lot and if it is so, the import is prohibited. Therefore, the Revenue has rightly construed the prayer sought for by the Importer and passed the order dated 29.12.2020 permitting provisional release of the cargo subject to certain conditions. Therefore, no error can be attributed to the manner in which the Revenue construed the Letter dated 23.12.2020 as we are of the clear view that the Letter was for release of the goods and the request for mutilation was only an alternate submission, if the Department is not convinced for release of the goods. The Revenue agreed for release of the goods by way of prov....