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Issues: Fabric used in readymade garments, Mis-declaration of goods, Admissibility of drawback, Manipulation of records, Expert opinion requirement
Fabric used in readymade garments: The case involved a dispute regarding the fabric used in readymade garments declared for drawback. The adjudicating authority found that the garments were made of nylon as the base fabric with embroidery of viscose. The appellants argued that the fabric was self-designed during weaving and primarily consisted of viscose, not nylon. However, the adjudicating authority's specific finding supported the initial assessment. The appellants' insertion of "P/L" after factory clearance was seen as a manipulation of records. The CHA admitted the mistake of classification, further weakening the appellants' case. The absence of expert opinion to support the fabric composition claim worked against the appellants, leading to the rejection of their appeal. Mis-declaration of goods: The appellants had initially declared the readymade garments for drawback, stating the FOB value and claiming drawback as per the relevant rules. However, upon examination, it was discovered that the goods were mis-declared, with the fabric composition not aligning with the declared details. This mis-declaration led to the confiscation of the goods under Section 113(i) of the Customs Act. Additionally, a redemption fine and penalty were imposed on the appellants under Section 114 of the Customs Act. The appellants' argument regarding the fabric composition was not accepted by the authorities, further solidifying the mis-declaration aspect of the case. Admissibility of drawback: The issue of admissibility of drawback arose due to the mis-declaration of goods and the discrepancy in the fabric composition. The appellants claimed drawback based on the declared fabric details, which were found to be inaccurate upon examination. The adjudicating authority determined that the drawback was only admissible if the garments were primarily made of cotton/polyester and/or cellulosic yarn, not nylon with viscose embroidery as in this case. Therefore, the appellants were deemed ineligible for the relief they sought, given the fabric composition discrepancies and the manipulation of records observed during the proceedings. Manipulation of records: The insertion of "P/L" by the appellants after the clearance of goods from the factory was considered a manipulation of records. This action, admitted by the CHA of the appellants, raised questions about the accuracy and integrity of the information provided during the customs clearance process. The manipulation of records, along with the mis-declaration of goods, contributed to the unfavorable outcome for the appellants in the case. Expert opinion requirement: The appellants' failure to seek expert opinion to support their claim regarding the fabric composition of the readymade garments was highlighted as a crucial oversight. Instead of providing expert evidence to substantiate their position, the CHA admitted the mistake of classification during adjudication. The absence of expert opinion weakened the appellants' argument and credibility in the case, ultimately leading to the rejection of their appeal.
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