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1987 (7) TMI 98

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..... will be allowed clearance after proper mutilation, if found necessary, in the manner specified in the notice. Any consignment that may be shipped after 30th April 1987 should satisfy the conditions detailed in the notice and no mutilation will be permitted for such consignments. The challenge to the above public notice was on the ground that it modified the provisions of the Import Policy which adversely affected the importers like the petitioner and the same is, therefore, violative of Articles 14, 19(1)(g) and 301 of the Constitution of India and is also against the doctrine of promissory estoppel. We may say that the said public notice has been superseded by the Public Notice No. 14/87, dated 17th June 1987 and, therefore, the said publ .....

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..... Woollen Rags/Shoddy Wool/Synthetic Rags will be allowed only when these are imported in completely pre-mutilated condition. (ii) Definition of woollen rags is as follows :(a) 'New' - waste woollen cloth whether woven or knitted which is left after a garment had been cut out including genuine tailor cutting piece ends, discarded pattern bunches and sample bits. (b) 'Old' - Rags of woollen textile fabrics (including knitted and crocheted fabrics) which are required for manufacture of shoddy yarn and may consist of articles of furnishing or clothing or other clothing so worn out, soiled or torn as to be beyond cleaning or repair. (iii) The above definition shall also apply mutatis mutandis to synthetic rags.' 4. The petitioner is a man .....

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..... Assistant Collector of Customs (respondent No. 3) however, refused to clear the goods as, according to him, the mutilation was not in accordance with the Public Notice No. 7/87. We have earlier stated that the said public notice has been superseded by Public Notice No. 14/87. 6. The goods were inspected by the Assistant Collector of Customs on 8th July 1987 and 14th July 1987 and the examination report of the Assistant Collector reads as follows : "Examination report dated 8-7-1987 :- (Three container Nos. MAEU-2101316, MAEU-2073620 AEU-2112938 (138 Bales) "Opened and examined the goods in the presence of the Superintendent (Cus) Appr. (Cus) and Party and opened Bale Nos. 52, 65, 80, 92 and three Bales from other two Containers, .....

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..... Shri Rajeev Kumar and Inspector I.P. Mehta, with seal No. 150." 8. Shri Sen contended that the expression 'rag' has to be given a common sense meaning i.e. as would be known to the trader who usually deals with such items not necessarily for the well-to-do, nor for the man of the street, but as usual in his business to cater for all alike. The Counsel contended that the certificate of inspection (page 36) records that the 'container carries completely pre-mutilated rags. Each piece of rag/clothes is cut into two or more pieces, therefore the same is completely mutilated and cannot be repaired'. The counsel further referred to Annexure 8 (page 39) a letter written by the Assistant Director, Ministry of Industry, Small Industries Service I .....

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..... he term 'woollen rags' when 'old' would mean 'old and discarded woollen garments which have been mutilated, otherwise than by reaping at the seams and rendered unserviceable". This definition was further revised by the Import Trade Control authorities by a public notice dated 8th August 1974. The said notifications were held to be not applicable to the goods already shipped or arrived. We, however, find that in the case Hind Hosiery Mills (para 33) the Board while setting aside the order of absolute confiscation had ordered that the goods as released from the order of absolute confiscation shall be mutilated so as to render them totally unserviceable. 10. We find that condition No. 37 in Appendix 6 (page 168) specifically provides (i) tha .....

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