TMI Blog2016 (3) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... nd are virgin new material, as per the certificates of the manufacturer suppliers submitted alongwith the consignment at the time of customs clearance. Also the appellants have drawn sample on their own from the consignment and sent the same to CIPET, Chennai, who certified the goods to be plastic scrap virgin. Therefore, the portion of goods which contains the bar codes or stickers needs to be segregated and re-exported and the balance portion to be cleared on payment of reduced redemption fine and penalty. - Decided partly in favour of appellant - Appeal No. C/11473/2015 - ORDER No. A/10122 / 2016 - Dated:- 24-2-2016 - Mr. P. M. Saleem, Hon'ble Member (Technical) For the Appellant : Shri Willingdon Christian, Advocate Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of fine, with penalty, alongwith the direction to re-export the goods vide the impugned orders. He submits that though the plastic scrap imported by 100% EOU are exempted from customs duty, the import of the same is governed by certain conditions under the LOP issued by Development Commissioner, Ministry of Commerce. As per the LOP pertaining to the subject goods, the following conditions are to be adhered:- 1. The material should be free from Toxic and Hazardous Contamination. 2. The material should be virgin. 3. The materials are not used whatsoever. Samples were drawn from the subject goods and sent to Central Institute of Plastic Engineering and Technology (CIPET), Ahmedabad. The test report confirmed that the goods are f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the goods, and to the test report of CIEPT, Chennai. In the de-novo adjudication, the Adjudicating Authority again held that the goods are liable for confiscation since the same did not conform to the conditions specified in the LOP. Commissioner (Appeals) while upholding the said decision, reduced the redemption fine and penalty. The Learned Counsel submits that the subject plastic scraps are in the form of plastic films, which are manufactured by their suppliers, and these plastic films at certain intervals or length contain the bar code of their customers. The portion containing bar code in the whole consignment would be negligible, about one to two percent only. While drawing samples, instead of taking representative samples which me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of a fine in lieu of confiscation, means that the goods are to be allowed to be cleared for home consumption, and that in their case, the goods are not even being cleared for home consumption but taken to their manufacturing unit which is 100% EOU and the goods are consumed in the manufacture of final products, which are exported. The subject goods are also free from Toxic and Hazardous Contamination and therefore not prohibited under provisions of Hazardous Waste (Management handling Transboundary Movement) Rules, 2008. In view of the same, the Learned Counsel argues that direction to re-export the goods after payment of redemption fine is illegal and cannot be sustained. He relies upon the decision of this Bench of the Tribunal in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hence the goods are eligible to be cleared from customs charge, on payment of redemption fine in lieu of confiscation. Therefore, we do not find any reason to order the goods to be re-exported. We find that the imported goods are not put to any use whatsoever and are virgin new material, as per the certificates of the manufacturer suppliers submitted alongwith the consignment at the time of customs clearance and which forms part of the appeal documents. It is observed that the appellants have also drawn sample on their own from the consignment and sent the same to CIPET, Chennai, who certified the goods to be plastic scrap virgin. It is observed that the appellants had disputed the initial drawl of sample and testing thereof and had su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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