TMI Blog1995 (12) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... r Heading 8301.40 of Cutoms Tariff. The import was from Singapore. The goods were of Taiwanese origin. Appellant had S.S.I. registration. Manufacturer s invoice was not produced. On examination, the goods were found to be packed in outer cardboard cartons with marks CP-801 BR and CP-822 BR and an inner cartons with marks 801 R and 822 R in respect of two types of locks. One type of locks had marking SHOPIN (R) USA DAT No. 4766748 ROC PAT No. 36983, made in Taiwan . Other type of locks had no marks. Instruction cards were found along with the locks. The customs authority realised that the locks were mechanical number locks and not magnetic locks and were believed to be used in sophisticated brief cases. In answer to query from the customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cence. The Collector has taken the latter view after adverting to the submissions made on behalf of the appellant. There is no dispute that magnetic locks are quite different from mechanical number locks. The former work on the principle of magnetism and the latter work on the basis of pre-adjusted number. Appellant declared the goods to be magnetic locks. On this ground, the Collector held that there was mis-declaration of description of goods. The correctness of this finding is not challenged before us. 3. We may in this connection refer to the SSI registration certificate dated 14-1-1983. The certificate shows that it is an existing unit and items of manufacture are stated to be the following :- Plastic Advertisement Utility Artic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t II of Chapter XV of the Export and Import Policy for 1992-1997. Part II deals with restricted items. Consumer goods are dealt with under sub-part A. Import of all consumer goods howsoever described is not permitted except against a licence or in accordance with a public notice issued in this behalf. It is on this ground that the Collector held that the specific licence was necessary. At page 66, there is a list of items, which, it is said, shall be freely importable, although they may be regarded as consumer goods. Item No. 3 reads as follows:- All types of Trimmings and embellishments, Fasteners, Buttons, etc., for garments, made-ups, knit-wear, plastic/leather goods . The important expressions are Trimmings, Embellishments and leat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbellishments would indicate ornamental or decorative addition. When one refers to a product which is embellished, one means the product is embellished with some decorative addition. The same is the sense in which the expression trimmings has been used. This is clear from what we have quoted from page 245 of the 1984-85 Import Policy. A lock in a brief case is such an essential part of the brief case that people generally would not accept a brief case without a locking arrangement. Viewed in this light, locks vis-a-vis brief cases cannot be regarded as trimmings or embellishments. This is also supported by the illustration given in Item 3 at page 66 of the current Import Policy, namely, trimmings and embellishments, fasteners, buttons, etc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the transaction was at arms length and neither party was interested party and there is no material to show clandestine remittance of additional consideration. These principles, even assuming that they are of universal application, cannot be applied in the instant case, for the simple reason that the proved mis-declaration renders the transaction value unacceptable. The appellant accepted the allegation of mis-declaration even at the earliest stage, as can be seen from its letter addressed to the customs house requesting for sanction for re-export. That should have alerted the appellant to the situation that transaction value would be unacceptable. In those circumstances, appellants also had a duty to produce materials relating to contem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In these circumstances, it is difficult to accept that wrong goods were sent under a bona fide mistake. It is significant to note that in spite of a clear mis-description being made out even at the earliest stage, appellant did not produce before the Collector copy of the original order placed for the supply of goods. That would have made it clear whether the goods ordered were magnetic locks or mechanical number locks. In these circumstances, we are not persuaded to agree that the appellant should be allowed to re-export the goods. 13. However, in the circumstances, we reduce the redemption fine from Rs. 5 lacs to Rs. 3 lacs. Penalty is reduced from Rs. 50,000.00 to Rs. 30,000.00 14. Appeal is accordingly disposed. - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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