NORTHERN PLASTIC LIMITED NORTHERN PLASTICS LIMITED NEW DELHI Vs. COLLECTOR OF CUSTOMS $ CENTRAL EXCISE:COLLECTOR OF CUSTOMS RAJKOT

JUDGEMENT

(1.) The appellant in both these appeals is Northern Plastics Limited. Civil Appeal No. 4196 of 1989 is filed against the order of remand dated 14-8-89 passed by the Customs, Excise and Gold (Control) Appellate Tribunal (hereinafter referred to as the 'CEGAT') in Customs Appeal No. 2092/89-C. Civil Appeal No. 3325 of 1990 is filed against the order dated 20-4-90 passed by the CEGAT in Customs Appeal No. 2720/89-C, which appeal was against the order of the Collector passed after the remand.

(2.) In January 1989 the appellant imported 59 jumbo rolls of Photographic Colour Films (Unexposed) Positive. On or about 11-1-89 it produced before the Deputy Collector of Customs, Kandla Port the documents required for clearance of the said goods wherein the goods were described as "Cinematographic Colour Films (Unexposed) Positive" falling under Customs Tariff Heading 3702.41 and the Central Excise Tariff Item 3702.20 and entitled to exemption of customs duty under Notification No. 52/86 read with Notification No. 157/88-Customs and of countervailing duty under Notification No. 50/88-C. Ex. Clearance of the goods was sought under OGL, the imported goods being Item No. 186(1) of Part I of List 8 of Appendix 6 of AM 85-88.

(3.) On examination at Kandla Customs House they were found to be "Colour films-jumbo rolls" and, therefore, not entitled to the benefit of exemptions under the said notifications. Therefore, the Collector of Customs, Rajkot initiated proceedings for confiscation under Section 111(m) of the Customs Act, 1962 and imposition of penalty. The appellant waived show cause notice and requested for a personal hearing. The appellant was charged for misdeclaring the goods as "Cinematographic Colour Films (Unexposed) Positive," with a view to evade Government revenue to the tune of Rs. 51,89,698/-. The appellant was told that the misdeclaration consisted of wrong description of the goods, in the Bill of Entry and was for the purpose of availing of exemptions in payment of customs duty and countervailing duty. The appellant was also told that it was having SSI Certificate for only cutting/conversion of jumbo rolls and as it was not a manufacturing activity it could not be considered as 'actual user (industrial)'. On this basis it was charged that it had imported the goods illegally. The third point which was raised by the Collector was with respect to eligibility of the goods for exemptions in the rates of duty as claimed in the Bill of Entry.