TMI Blog1984 (7) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... ril 1982 - March 1983 Import and Export Policy. By virtue of this provision of the Policy, the appellants claimed that the goods were covered by the O.G.L. The lower authorities, however, held that the goods were not covered by the O.G.L. as claimed by the appellants, and after issuing a show cause notice the case was adjudicated by the Deputy Collector of Customs, Bombay. The Deputy Collector after hearing the appellants held that the two consignments in question were not covered by the O.G.L. and ordered confiscation of the same. However, in lieu of redemption of the goods, the Deputy Collector gave the appellants the option of redeeming the two consignments on a fine of Rs. 44,000/- and Rs. 43,000/-, respectively. Aggrieved with the De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel, the expression raw material had not been defined in the ITC Policy. As the goods in question were ultimately required to be used in the manufacture of leather footwear these could, broadly speaking, be treated as raw materials for leather footwear. 5. Alternatively, the goods could be considered as consumables because these were used in the manufacture of leather footwear for the purpose of wrapping. Tissue paper can be treated as a consumable article in terms of the definition of the said expression given in Paragraph 5(12) of Chapter 2 of the A.M. 83 Policy. The expression has been defined as follows :- Consumable means any item which participates or is required in a manufacturing process; but does not form part of the end pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... principles of natural justice. It was not disputed that the appellants were actual users and were registered as such to manufacture leather footwear, briefcases and suitcases. The imported goods were covered under the O.G.L. because these were in the nature of raw materials , consumables and inputs for the leather footwear industry. 8. The learned counsel submitted that the lower authorities had discarded their valid pleas and taken harsh action against them by confiscating the goods and pitching the redemption fine approximately equal to the value of the goods. It was submitted that it was very unusual to levy fine of cent per cent level On goods covered by the O.G.L. He maintained that orders passed by the lower authorities were n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturing process but do not form part of the end product, e.g. catalysts used in the manufacture of Vanaspati. Tissue paper was not used in the manufacturing process of leather footwear and could not therefore be treated as consumables . The averment that tissue paper was used to provide layers for cushioning in the leather footwear had not been supported by any technical authority. Further, this plea was not taken by the appellants before the Deputy Collector before whom the only ground taken was that the tissue paper was to be used for the purpose of wrapping the footwear. In any event, the learned Collector (Appeals) had given his finding after seeing the sample. Shri Jain stressed that the appellants had been quite inconsistent in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fications imported by the appellants falls within the purview of Item 1 of Appendix 10. As mentioned earlier, the said item covers raw materials, components and consumables. Shri Balani straightaway conceded that tissue paper could not be treated as a component . The expression raw material is not defined in the Policy Book but in trade and manufacturing circles there is hardly any ambiguity about what is meant by the expression raw material . It is the admitted position that tissue paper is used as a wrapping material for leather footwear. However, wrapping or packing material per se cannot be treated as raw materials . Shri Jain s submission that reliance on the Supreme Court s decision does not advance the appellant s rase is, there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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