TaxTMI 
TaxTMI 
2023 (3) TMI 183
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....rt provisionally on the strength of a bond executed by the exporter. The CLRI vide its letter No. CLRI/TAN/CUSTOMS/046/ 2010 dated 26.02.2010 stated that the subject sample fails to satisfy the norms in terms of DGFT's Public Notice referred to above, for the reason of "Absence of snuffing on the grain imparting visible evidence of removal of grain". 1.2 It may be mentioned here that only finished leather of all kinds which conform to the conditions contained in the Public Notice No. 21/2009-14 dated 01.12.2009, are freely exportable and all others are restricted for export requiring a valid export license issued by DGFT authorities. As per Export Tariff (S. No. 14) of Schedule II of Customs Tariff Act, 1975, "Hides, skins and leathers, tanned or un-tanned, all sorts", but not including manufactures of leathers, attract an export duty of 60%. Further, only finished leathers are eligible for drawback. 1.3 On the basis of the CLRI report that the exported leather was not conforming to the definition of finished leather, after due process of adjudication, the consignment was confiscated valued at Rs. 6,08,578/- (FOB) under Section 113 (d) of the Customs Act, 1962. As the consign....
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....43 (Tri.-Chen.), wherein on the basis of the CLRI reports confiscation, fine and penalty were upheld. 4. We have carefully heard both sides and examined all the records. 5.1 The issue for determination in the appeal is whether CLRI's interpretation of the conditions/norms prescribed in DGFT's Public Notice No. 21/2009-2014 dated 01.12.2009 is correct or not for Export of Finished Leather. Ld. Advocate has argued that as per DGFT's Public Notice, Shaving or Snuffing is required for allowing this type of leather for export but the report is silent with regard to compliance with the process relating to shaving and though CLRI's report may be factually correct as to absence of snuffing but it's interpretation as to fulfilment of the norms/conditions of DGFT's Public Notice to treat as finished leather is not legally tenable. He has further referred to "Guidelines for Identification of Finished Leather for Export by the Bureau of Indian Standards" to support his contentions. So, it is necessary to go through the norms and conditions prescribed in DGFT's Public Notice dated 01.12.2009 and also the guidelines of BIS for ready identification of different varieties of finished leather....
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.... ..................... ..................... ..................... .................... ..................... Shaving:- A mechanical operation of reducing the substance of leather to uniform thickness by scrapping off layers from flesh or grain side. Snuffing:- The process of buffing the grain side of leather usually done by buffing machine, with visible evidence of removal of grain. ................. ................. ................. Rolling:- The operation of rolling the heavy leathers like sole leather using a heavy roller with rolling machine. 2. This issues in public interest. (R.S. Gujral) Director General of Foreign Trade and Ex Officio Additional Secretary to the Government of India." (B) Guidelines for identification of finished leather for export by the "Bureau of Indian Standards" is extracted as under:- "Indian Standard GUIDELINES FOR IDENTIFICATION OF FINISHED LEATHER FOR EXPORT (Third Revision) Leather Sectional Committee, CDC 16 ..................................... ...................
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....Table 1 under the following heads: a) clothing leathers, b) Fur leathers, c) Glove leather, d) Industrial leathers, e) Lining leathers, f) Luggage leathers, g) Miscellaneous leathers, h) Shoe upper leathers, i) Sole leathers, and j) Upholstery leathers TABLE 1 IDENTIFICATION OF FINISHED LEATHERS VARIETY OF FINISHED LEATHERS BRIEF DESCRIPTION MINIMUM OPERATIONS INVOLVED IN MANUFACTURE (1) (2) (3) a) Clothing leathers 1) From Cow and Buffalo Hides and Calf skins Shall be chrome/combination tanned. Shall be soft and have drape ----- ............................................................ ............................................................ b) Fur leathers ........................ c) Glove leathers ........................ d) Industrial leathers ........................ e) Lining leathers ........................ f) Luggage leathers ........................ g) Miscellaneous leathers ........................ h) Shoe upper leathers ..............
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....guidelines, at "Note-1 - Shaving and/or snuffing may be done along the back bone or fully" is mentioned at the end of manufacturing/processing operations relating to suede leather. Usage of and/or in BIS guidelines indicate that one of the processes if carried out is adequate according to the ld. Advocate. Further, minimum operations involved in manufacture for suede upper/shoe suede upper leather as per BIS guidelines are 1,2,3,4,7,8,11 and 12, which are Levelling, Retanning, Dyeing, Fatliquoring, Setting, Staking/boarding, Buffing and Raising a suede nap by dry drumming/plush wheeling/buffing. It is noteworthy to mention here that shaving and /or snuffing are mentioned at Sl. No. 13 as indicated above which are not prescribed as one of the minimum operations to be carried out in the manufacture of suede leather. 5.3 As, a forward (/) has been used in the DGFT's Public Notice in respect of shaving/snuffing, a question arises as to the way it needs to be interpreted or understood. Ld. Advocate has put forth that the forward slash (/) has to be understood to mean "and" or "or'' depending upon the context. He has drawn our attention to the decision of the Hon'ble High Court of Mad....