KAUSALYA IMPEX Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) For the purpose of hearing this appeal the appellants are required to pre -deposit duty amount of Rs. 6,32,699 and penalty of Rs. 6 lakhs.

(2.) The appellants had imported "Flock Fabric and Fur Cloth". The department took an opinion from Central Leather Research Institute with regard to the use of the item. But the appellants' claim to be "Insole/Midsole" in terms of the Notification No. 16/2000 -Cus dt. 1.3.2000. The CLRI confirmed by their opinion dt. 27.11.2000 that the items cannot be used for insole/midsole. The Revenue has also proceeded on the HSN explanatory note wherein it is laid down that the items cannot be used for feather industry.

(3.) Appearing on behalf of the appellants, Ld. Counsel submitted that the appellants are facing final hardship and now are under loss and relied on the Chartered Accountant's certificate. They also relied on the judgments rendered by the Commissioner (Appeals) in another matter in Order -in -Appeal No. 4/2001 wherein he has dismissed the Revenue appeal pertaining to the licensing issue and not on the benefit of notification in question. Ld. Counsel further relied on the judgment rendered by the Tribunal in the case of Mod Apparel Exports v. CC, Calcutta, 1996 (86) ELT 388 (T) which deals with the coated fabrics being 'insole' for use in leather footwear industry.