TMI Blog1996 (9) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... on ready-made garments . After making enquiries, the department took the stand that the imported goods could not be used as replenishment material because they were not identical in nature and technical characteristics with goods used in the manufacture of the exported garments. The department was also of the view that the value of the goods had been underdeclared. Notice was issued proposing denial of the benefit of Notification No. 117/88 and confiscation of the goods and imposition of penalty on the ground of misdeclaration of value. After considering the cause shown, and hearing the importer, the Collector passed orders, increasing the value of the goods, denying the benefit of notification, ordering confiscation of the goods (with an o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t judgement in Mysore Metal Ind. v. CCE - 1988 (36) E.L.T. 369. If Garment Craft had in fact used the goods as trimming and embellishment in the garments exported, it would have been easy enough to establish it by means of correspondence with the buyer. This has not been done. The evidence relied upon consists of documents showing that it has purchased fabric of the kind imported. This by itself does not show that such fabrics was used in the consignments exported. It may have been used in other consignments either for local sale or for export. This contention therefore fails. 6. It is next contended that for the benefit of notification to be granted, it is not necessary that the imported goods should actually be used in the export produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce. There are however only two of the conditions. The notification allows duty free import of goods as replenishment where the Pass Book holder has to export his finished goods to meet delivery schedule before he is able to import the raw material. This is condition (i) of the Notification. This condition also provides that replenishment shall be permitted only to the extent of material used in the manufacture of the resultant product exported prior to the date of first importation under the Pass Book. It is clear from this that the notification contemplates import as replenishment only in cases where the manufacturers of the final product has taken place prior to import and only to the extent of goods used in such manufacture. In other wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in Preet Chattons v. Collector of Customs, Goa - 1996 (86) E.L.T. 60 (Tribunal) to Notifications 224 and 225/85-C. Ex. Notification No 117/88 does not employ the words for use . It speaks of goods imported for the manufacture of product or replenishment of goods used. Condition (f) in fact specifically provides that the goods shall be used for the purpose specified in the notification. The fact that another notification may have required correspondence of goods by means of technical specifications etc, is of no help in considering the provisions of this notification. The meaning of the words in this notification is plain and clear and the words have to be taken as they read. 9. It is also not possible for us to agree that the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed upon by the Collector in terms of technical specifications, quality etc. They cannot therefore be considered to be identical or similar goods within the meaning of the Valuation Rules or to be such or like goods within the meaning of Section 14, even if we assume, (as contended by the Departmental Representative) that sub-section (1) of Section 14 would apply. The only thing common between these three importations is that they are from the same country Korea. They are all velvet. This alone is not sufficient to question the transaction value. The charge of undervaluation therefore fails. Since the goods have been confiscated only on the ground of mis-declaration of value, their confiscation and imposition of penalty are not sustain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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