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2016 (3) TMI 297 - CESTAT AHMEDABAD

2016 (3) TMI 297 - CESTAT AHMEDABAD - 2016 (337) E.L.T. 153 (Tri. - Ahmd.) - Re-export of entire goods - Prohibition on import of goods - Goods involves Toxic and Hazardous Contamination - Held that:- the goods are free from Toxic and Hazardous Contamination results in no absolute prohibition for import of the goods and hence the goods are eligible to be cleared from customs charge, on payment of redemption fine in lieu of confiscation. Therefore, the entire goods are not liable to be re-exporte .....

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tion 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 For the Respondent : Shri Sameer Chitkara, Authorised Representative ORDER Per : Mr. P. M. Saleem .....

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his is the second round of litigation in the matter. 2. Heard both sides. The Learned Counsel for the appellants submits that they are an established manufacturing unit functioning for more than 15 years, and an 100% Export Oriented Unit (EOU) manufacturing Plastic bags and Plastic Granules and exporting the same. They import raw material viz., plastic scrap (Non Hazardous) and use the same in the process of manufacture of the final products. He submits that they regularly import such plastic sc .....

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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 se .....

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nd imposed redemption fine and penalty along with a direction to re-export the goods. The appellants agitated against the same in the first round of litigation, which reached up to the Tribunal. The appellants had argued that the sample drawn was not representative and therefore they had sought drawl of fresh sample and re-testing of the same. The first appellate authority viz., Commissioner (Appeals) remanded the matter to the Adjudicating Authority for redrawing the sample. The said decision w .....

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text, he also drew the attention of the Bench to the certificates of their manufacturer- suppliers which accompanied the supply 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 .....

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ortion. This has resulted in wrong drawl of sample. It also resulted in wrong test report. As bar code normally indicate that the goods are used, the test report also indicated the goods to be virgin used. He submits that the word virgin itself means that the goods are unused, and in any case, more than 98% of the consignment which are new plastic films without bar code are undisputedly not put to any use by any stretch of imagination. That is why they had requested for redrawl of sample in the .....

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with other provisions of the Customs Act, goods which are not prohibited but liable to confiscation shall be redeemed on payment of a fine in lieu of confiscation. He submits that subject goods are not prohibited goods and the adjudicating authorities have confiscated the goods, but, allowed redemption of the same on payment of fine. He submits that redemption, by way of payment of a fine in lieu of confiscation, means that the goods are to be allowed to be cleared for home consumption, and that .....

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after payment of redemption fine is illegal and cannot be sustained. He relies upon the decision of this Bench of the Tribunal in the case of M/s San Plastics vs. Commissioner of Customs, Kandla, vide Final Order No. A/741-742/WZB/AHD/2012 dated 25.05.2012. He submits that the facts and circumstances of the said case are exactly same as in the present case and the Tribunal in that case held that the portion of the goods with the stickers and bar codes were to be separated/segregated and to be r .....

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der the provisions of Customs Act, whereas, re-export of the goods is for violation of the Hazardous Waste Rules, 2008. 4. On careful examination of the records and the arguments of both sides, we find that the appellants are an established manufacturer and 100% EOU unit, which consumes the imported goods in the manufacture of final products, which are exported. In such a scenario, the imported goods are not cleared to the domestic market. We find force in the submissions of the Learned Counsel .....

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