TaxTMI 
TaxTMI 
TaxTMI 
2023 (3) TMI 183
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....nd 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 consignment was allowed for export on the basis of ....
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....I 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 leathers particularly for export purposes. Relevant portion....
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....iform 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 ..................................... ................................... 0.FOREWORD 0.1..................... ....................... 0.5 ..................... 1. SCOPE 1.1 This standard lays down guidelines for ready identification of different varieties of finished leather particularly for export purposes. 1.2 This standard does not specify quality of individual f....
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............................................................... ............................................................ b) Fur leathers ........................ c) Glove leathers ........................ d) Industrial leathers ........................ e) Lining leathers ........................ f) Luggage leathers ........................ g) Miscellaneous leathers ........................ h) Shoe upper leathers ........................ i) Sole leathers ........................ j) Upholstery leathers ........................ .................................................... .................................................... h) Shoe upper leathers Unless otherwise specified shall be chrome/combination tanned. Leather processed for upper part Of footwear. --- 1. From Cow and Buffalo Hides and Calf Skins ....................................... ........................................ 2) Shoe Upper from Goat/Sheep Skins. Made from goat/kid/lamb/sheep Skins and shall be chrome/com- -bination tanned unless otherwise Specified. Processed for upper Part of footwear &....
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.... 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 Madhya Pradesh (Jabalpur Bench) in the case of Arti Dahayat Vs. State of M.P. in Writ Petition No. 24112/2021 dated 11.11.2021, wherein it has been held as under:- "10. As per English usage "/" (forward slash) also known as forward slash, stroke, oblique, is often use to indicate "or". As per Oxford Advance Learner‟s Dictionary of Current English, A.S. Hornby, Seventh edition, oblique the symbol (/) used to show alternatives. In the case of Star Co. Ltd. Vs. Commissioner of Income Tax, MANU/SC/0311/1970 : AIR 1970 SC 1559, it is held that positive conditions separated by "or" are read in the alternative; and, in the case of Patel Chunibhai Dajibha Vs. Narayanrao, MANU/SC/0287/1964 : AIR 1965 SC 1457, negative conditions connect by "or" are construed as cumulative and "or....