COMMISSIONER OF CUSTOMS Vs. ARISTO INDUSTRIES

JUDGEMENT

(1.) THIS appeal filed by the Revenue is directed against the Order -in -Appeal No. C. Cus. 523/98, dated 10 -6 -98 passed by the Commissioner of Customs (Appeals)/ Chennai by which the Commissioner (Appeals) has set aside the order -in -original passed by the original authority and allowed the appeal of the assessee -respondents holding that the findings reached by the original authority are inconsistent and non -speaking.

(2.) THE brief facts of the case are that the assessee -respondents are engaged in the manufacture of Buffing mops using cloth cutting waste, mill cutting and gunny cuttings. They have imported gunny cuttings valued at Rs. 92,354/ -from South Africa and filed Bill of Entry No. 59041, dated 31 -10 -97 for the clearance of 17.06 Mtrs. of goods declared as "Gunny Cuttings" and have declared the value as Rs. 93,278/ -. The importer sought clearance of the goods under CTH 6310.90 under OGL.

(3.) THEY are actual users of the goods. The examining officer found that the goods are unsorted gunny cuttings. Subsequently, the Additional Commissioner on finding that the goods had not been examined in the light of HSN explanatory notes as to the term "sorted gunny cuttings" he had ordered thorough examination and on re -examination the Assistant Commissioner (Docks) opined that the goods fall under the category of "sorted gunny cuttings". The original authority however found that the goods in question are sorted gunny cutting and gunny bags and are restricted goods which require licence for their importation. Therefore, in the absence of licence, the goods have been confiscated with an option to redeem the same on payment of fine of Rs. 50,000/ -. Penalty of Rs. 5,000/ - was also imposed. Aggrieved by the said order the assessee -respondents moved the Commissioner (Appeals) and the Commissioner (Appeals) set aside order of the original authority and allowed the appeal as noted above. Aggrieved by the said order of the lower appellate authority, the Revenue has come in appeal on the following grounds :