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TMI Blog1990 (12) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... e machines to be falling under Heading 8479.89 and denied them the exemption under Notification No. 125/86-Cus. and also confiscated the machine for contravention of the Import and Export (Control) Act, 1947, and permitted redemption on payment of a fine of Rs. 20,00,000/- and differential duty of Rs. 93,56,362.30. 2. The appellants have putforth the following grounds of appeal. That they were not permitted the cross-examination of the experts, whose reports formed the basis for issue of the Show Cause Notice and, therefore, there was a denial of the principles of natural justice. The examination report of Shri P.V. Narayanan, Additional Director of Indian Institute of Packaging though specifically asked for was not given in order to rebu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Part-B, Sl. No. 1, sub-serial No. 18 as Laminating and Coating machine for the A.M. Policy 1988-91 and would be covered by OGL which was not accepted by the Principal Collector. The Aseptic packaging machinery's starting point is the manufacture of aseptic packaging material and in the trade parlance, the aseptic packaging is a system involving a number of machines and the Principal Collector has erred in holding that the manufacture of aseptic packaging machine is an activity of several stages earlier to sterilised packing. That the machine imported is for producing aseptic packing materials which are mainly/predominantly used in packing food articles though not for processing of food articles and the machine imported would produce 5-7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 and cited the Public Notice No. 164/89 dated 4-12-1989 which gives the guidelines for implementation of certain industry based Notifications which do not contain end use conditions. 4. In his rejoinder, Shri M.K. Sohal, Ld. J.D.R. stated that the notification was for use in processing/packaging of food articles and the machine imported as per the examination report and expert opinion was for manufacturing aseptic material and will not be covered by the Entry No. 17 sub-serial-1 of Appendix-I, Part-B as Aseptic packing machine, and the appellants' claim for entry under Sl. No. 1, sub-serial No. (18) Appendix-I, Part B of 1988-91 AM Policy claiming it as Laminating Coating machine, it is not permissible as that entry is for Jute Industry. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ood products and sealing." There is no dispute about the fact that it is a machinery for manufacturing aseptic packing material. The appellants have not controverted this fact and the contract also mentions that the equipment will produce satisfactorily Aseptic Packaging Materials. The Notification No. 125/86-Cus., dated 17-2-1986 is applicable for goods for use in processing/packaging of food articles and Sl. No. 23 reads as "Aseptic Packaging machinery which may also perform one or more of the following processes in addition to packaging:- Presterilising, pasteurising, comprising, forming, filling, sealing, coding, marking." The appellant has, therefore, to satisfy that this machine is for processing/packaging of food articles. The appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as also cited the several authorities on packaging for arriving at the conclusion that the machine does not conform to the description in S. No. 23 of the Notification No. 125/86-Cus. However, in his order he has not mentioned about the cross-examination of the experts although specifically asked for by them in their reply to the Show Cause Notice and also has not mentioned the reasons for not permitting the request. On this point they place reliance on the following decisions :- (i) M/s. B.M. Auto India v. Collector of Central Excise and reported in 1989 (41) E.L.T. 69 (Tri.), wherein this Hon'ble Tribunal followed the decision of the Hon'ble Supreme Court of India in the case of M/s. Kalra Glue & Factory v. Sales Tax Tribunal and Others ..... X X X X Extracts X X X X X X X X Extracts X X X X
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