TMI Blog2001 (3) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Table annexed to that Notification dated 16-3-1995, raw hides and skins (fresh, salted, dried, pickled or limed), whether or not split, including sheep skins in wool, falling under Chapter 41 of the Customs Tariff, enjoyed nil rate of customs duty. The imported material was described in the import documents as raw skin of lamb with hair . The classification was sought under sub-heading No. 4102.10 of the Customs Tariff. Pending test of the imported material, the consignment was cleared provisionally. Subsequently after the test report from the Footwear Design and Development Institute (FDDI), a show cause notice was issued on 2-5-1996 on the ground that the imported material was the tanned/dressed fur skins classifiable under sub-h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of Rs. 2,00,000/- has been imposed. It was submitted by the ld. Advocate that the Revenue has not been able to discharge the burden cast on them. He relied upon the following decisions :- (1) Godrej Foods Ltd. v. CCE, Indore reported in 2000 (115) E.L.T. 403 (Tribunal). Provisional assessment having been permitted, there could be no question of suppression of facts justifying invocation of Section 11 AC of the Act for levy of mandatory penalty. (2) Atul Glass Industries Ltd. v. Commissioner of Central Excise, New Delhi [1999 (114) E.L.T. 597 (Tribunal) = 1999 (34) RLT 519 (Tribunal)] Duty and penalty are not to be enhanced in remand proceedings. (3) Bonanzo Engg. Chemicals Pvt. Ltd. v. Commissioner of Central Excise - 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ickled for preservation. The process of salting, drying, pickling, etc. would not convert the raw hides and skins into tanned/dressed fur skins. At the time of import, the benefit of exemption was allowed provisionally. 5. According to the Report dated 19-4-1996 of the FDDI, the sample was hair on tanned sheep (lamb) skin . The Tariff description under Heading No. 43.02 was tanned or dressed fur skins. In the scheme of the Tariff, raw hides and skins were covered by Heading Nos. 41.01/41.02 and 41.03; raw fur skins were classifiable under Heading No. 43.01. The hides and skins of animals which had been tanned or dressed with the hair or wool on, were covered by the description of tanned or dressed fur skins classifiable under Heading No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll Dictionary of Scientific and Technical Terms - II Edition page 1592, tanning is a process of preserving animal hides by chemical treatment (using vegetable tannins, metallic sulfates, and sulfurised phenol compounds, or syntans) to make them immune to bacterial attack, and subsequent treatment with fats and greases to make them pliable. According to Kirk Othmer Concise Encyclopedia of Chemical Technology, III Edition page 694, the primary function for a tanning agent is to stabilize the collagen fibers so that they are no longer biodegradable. There are two types of tanning viz. Chrome tanning and Vegetable tanning. According to the Leather Development Wing of the Ministry of Commerce (refer para-6 of the State of Tamil Nadu v. Mahi Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n any case, the process of soaking, pickling, tanning, drying, staking, etc. were not the processes towards tanning as is clear from the description against Sl. No. 2 of the Table annexed to Notification No. 25/95-Cus., dated 16-3-1995. The description against Sl. No. 2 of the Table aforesaid was as under :- Raw hides and skins (fresh, salted, dried, pickled or limed), whether or not split, including sheep skins in wool. It is clear from the above description that the process of salting, drying, pickling or liming will not make the hides and skins as tanned or dressed. 10. The ld. Advocate appearing for the appellants had referred to the communication dated 15-12-1999 from the Addl. Director (Tech.) and submitted that the procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter of 19-4-1996. I presently, do not have any paper to show that CLRI was consulted as stated in the letter dated 19-4-1996. I, however, state that once it has been written they must have been consulted. As far as the laboratory records are concerned, no samples are shown. However, some times, papers and materials are received directly by the officers and dealt by them from their respective desks and test reports are given. In so far as these three samples are concerned I have already clarified the position above. It is not clear that all samples should come to the laboratory. The report can be given by the officers by visual examination or any other methods not necessarily through the instruments of the laboratory. Shri Ramesh Subramania ..... X X X X Extracts X X X X X X X X Extracts X X X X
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