2003 (5) TMI 154

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....as granted. The goods were cleared on payment of concessional rate of duty available in terms of the notification. 2.Entry 108 of the Table to the notification exempts from duty "The following goods for use in the leather industry, namely :- (1) parts, consumables and other items specified in List 3 (A), (2) other parts, consumables and items specified in list 3 (B)." The investigation carried out by the department as to the use of nylon flocking fabrics in the leather industry and it is concluded that the fabrics had many uses apart from making as insole and midsole for footwear. In the course of the investigation, statements of an importer Ranjit Shah were recorded, in which he accepted that he sold the goods to a trader and not to any....

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....d issued a Circular 74/98-Cus., dated 6-10-1998, the subject of which was imposition of actual user condition and end-use bond condition for insole/midsole and sheets thereon. Notification 11/97-Cus. Sl. No. 94(1) and Notification 23/98-Cus. Sl. No. 108. The first paragraph of the circular reads as below :- "Commissioner of Customs, Mumbai had made a reference on the eligibility of Nylon Tricot Fabrics/P.U. leather cloth under the above Sl. No. of the Notification No. 11/97-Cus. read with list 3 (A) therein. The dispute was that the product was having multiple uses and the main use not being that of use in leather industry. While Commissioner of Customs, Mumbai considered, this item to be covered under the heading Insole and Midsole, the....

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....laring nylon tricot flocking fabric the nature of what was imported was known to the department. The fact that it was claimed to be insole material, by itself is misleading since it appears that it is capable of making such use. It is settled law that a claiming an exemption by itself does not amount to misdeclaration. 7.The departmental representative relies heavily upon the contents of the Board's circular to say that the product has more than one use and in the absence of specific evidence of use in the leather industry, the benefit of the exemption cannot be given and misdeclaration of the goods as insole of leather footwear. The contents of the circular of the Board relating to the department of end-use certificate is not in issue b....