TaxTMI 
TaxTMI 
2003 (3) TMI 106
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....imported raw material for its said manufacturing activity from Japan. The raw material is known as Methyl Methacrylate Monomer (regenerated) [for short 'MMM']. A contract in this behalf was entered into by the appellant on 17-3-1996 with a Hongkong firm for supply of 106.40 metric tonnes of MMM regenerated second grade at the rate of US $ 300 per metric tonne CIF. The goods had been dispatched vide a Bill of Lading dated 29-5-1996. The Invoice and Packing List both dated 18-6-1996 accompanied the consignment. The Bill of Lading mentions the words "RMA" i.e. Regenerated Methyle Methaedylete. Likewise in the invoice as well as in the packing list it is stated that the goods were MMM regenerated second grade. The invoice further mentions quant....
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....monomer. The physico chemical properties of the same in respect of boiling point, refractive index, specific gravity and purity are in agreement with that of chemically pure methyl methacrylate monomer in the literature." 3.This report does not indicate whether the goods could be said to be regenerated second grade MMM. Since the report was not very clear, the CRCL was requested by the department vide letter dated 17-5-1997 to specify "whether the material can be described as Methyl Methacrylate Monomer regenerated second grade or virgin grade". The CRCL responded to the above vide its letter dated 23-5-1997 as under : "Keeping in view of physico chemical properties, the samples under reference do not have any basis to be considered a....
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....lant. Both reports stated that the goods were MMM regenerated second grade. 6.Ultimately the matter came up for consideration before the Commissioner of Customs, Amritsar. The appellant appeared before the Commissioner alongwith a Professor from the IIT, New Delhi who took alongwith him necessary equipment to conduct a test in front of the Commissioner to determine the quality of the goods in question. As per the test conducted before the Commissioner of Customs, it was established by the IIT Professor that the sample was of goods described as MMM regenerated second grade. The learned Commissioner after considering the said test report and other test reports on record came to the conclusion that the stand of the department was unsustaina....
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....eeded on a totally wrong basis and was, therefore, liable to be set aside. 8.Relying on Union of India & Ors. v. Garware Nylons Ltd. & Ors., [(1996) 10 SCC 413], the learned counsel for appellant contended that it was for the department to establish that there was mis-declaration of goods on the part of the importer. The department had failed to do so in the present case. The department did not have any clear report which could support its stand. It was also pointed out that at various other depots the department had allowed clearance of identical goods as regenerated second grade MMM. The learned counsel appearing for the department was unable to contradict this argument. He only submitted that the samples were sent to the Punjab Test H....
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....ce produced by the appellant on grounds which are not germane for the issue under consideration. The reasoning of the CEGAT is contradictory inasmuch as it accepts the report of the CRCL while ignoring a report from the IIT, New Delhi which was also obtained at the instance of the department. The reports in favour of the appellant by Government departments have been rejected on superfluous grounds. The reports produced by the appellant which it had obtained from official source clearly establish that there is no mis-declaration of goods and the imported goods are regenerated second grade MMM. 10.The Commissioner of Customs had given due weightage to the experiment conducted in his presence by the IIT Professor produced before him alongwi....
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....e established to be regenerated second grade MMM. In fact, it was vehemently argued before us that identical goods were allowed to be cleared by the Customs Department at other ports/ICDs as regenerated second grade MMM. This argument remained unrefuted and undisputed. 11.Further, as held in Union of India and Others v. Garware Nylons Ltd. and Others [(1996) 10 SCC 413], the burden of proof was on taxing authority to show that imported goods were not regenerated second grade MMM. Mere assertion by the department was of no avail as heavy burden was on the department to lay evidence that the test reports which were given by the Government Institutions were incorrect or erroneous. No such attempt was made and the test carried out before the....