ACHLA KAKKAR Vs. ADMINISTRATOR UNION TERRITORY OF DELHI

JUDGEMENT

(1.) M/s. Rane Diffusion Pvt. Ltd. is a Company, engaged in the manufacture and sale of garments. Shri Arun Kakkar is the Managing Director of the Company. On 5-4-1982, the Government of India issued a notification under S.25(1) of the Customs Act, 1962 whereby the goods specified in the Ist Schedule thereto and imported against an Advance Licence issued under the Imports (Control) Orders, 1955, were exempted from customs duty and the whole of the additional duty, leviable thereon under the Customs Tariff Act, 1975, provided : -

(2.) In pursuance to this scheme the petitioner secured the requisite Advance Licences, and importing 100% polyester fabrics, as well as foreign made zips with the said materials, the petitioner manufactured the garments for export. On 11-6-1986, a shipping bill No. 562 was filed by the company through M/s. Triways (Pvt.) Ltd. for the export of 7300 pieces of 100% polyester garments ladies night dresses/ night-wears with 20 cms. Y.K.K. polyester zips as per invoice No. 1084 dt. 15-5-1986 and advance licence No. 307823/C/XX/91/D/84. The said shipping bill was processed at ICD Pragati Maidan. The export cargo covered under the said shipping bill arrived at CFS Patparganj on 12-6-1986.

(3.) Acting on a specific information that the Company, would be exporting a consignment of ladies night dresses made of cotton with zip fastners of Indian origin in the garb of ladies night dresses made of 100% polyester with zip fasteners of foreign origin, imported by the company under the DEEC Scheme, for the manufacture and export of the same under the Customs bond, the staff of ICD Pragati Maidan and CFS was alerted and a secret watch was kept on the filing of shipping bill and arrival of cargo for export. Immediately on the arrival of the consignment at Patparganj, the Asstt. Collector, I.C.D. along with Asstt. Collector, Customs and other staff visited the C.F.S. Patparganj, Delhi on 12-6-86. The consignments covered by the abovesaid bill were subjected to examination in the presence of two independent witnesses. It revealed that the ladies night dresses apprehended to be made of polyester fabrics, but the zip fastners did not appear to be of foreign origin. During examination Shri Arun Kakkar, Managing Director of the Company was contacted and he came at the site of examination. Shri Arun Kakkar identified the goods and admitted that though ladies garments' consignments were made of 100 per cent polyester but the zip fastners used in them were mostly of Indian origin. In his subsequent statement he also admitted that the cargo covered by the abovesaid bills consisted of readymade garments of 100% polyester and 100% cotton fabrics and zip fastners used in them were mixed i.e. of Indian and foreign origin.