UNION OF INDIA Vs. CHARANJEETH KAPPOR

JUDGEMENT

(1.) The question for consideration in these appeals is as to whether the respondents are entitled to synthetic/woollen rags imported by the respondents fall under OGL vide serial Number 418, List 8, Part I of Appendix 6 of the ITC policy for the year 1993. Similar policy for the years 1985 to 1988 has been considered by the Supreme Court and it has been held that such an import is permissible under OGL. In Appeal (Civil) Nos. 12523 to 12526 of 1988 filed by the Collector of customs against the CEGAT order in Kakkar & Co. v. Collector of Customs reported in , the Supreme Court has dismissed the appeal and has held as follows:-

(2.) Thereafter, again, in Collector of Customs v. Swastika Woollen Industries (C.A. 933-65 of 1990 dated 19/03/1990) reported in 1990 (47) ELT 216, the Supreme Court has specifically held that in the absence of any identifiable test of complete mutilation laid down in the policy for the guidance of the importers and the endorsement [enforcement?] agencies, the benefit has to be given to the importers. In that case, the Supreme Court has also referred to its earlier decision in U.O.I. v. Tisco (ECRC and C) and pointed out that since the duties on strip and skelp are not the same, it is absolutely necessary to define the word "skelp" so that there can be no doubt or confusion in the mind either of the taxing authority or of the tax-payer with regard to the tax liability qua skelp as opposed to strip. That principle has been applied to the case of mutilated rags. In the instant case, as found by the Adjudicating Authority and also by the learned single Judge, the synthetic rags imported are mutilated, therefore they do fall under OGL vide serial number 418, List 8, Part I of Appendix 6 of the ITC Policy for the year 1993. Accordingly, we are of the view that the learned single Judge is justified in allowing the writ petitions. Hence, these writ appeals are liable to be dismissed and the same are dismissed. However, it is directed that the amount deposited by the respondents shall be refunded within one month (from today. The bank guarantees and personal bonds furnished in respect of these cases shall also be cancelled. However, there will be no order as to costs.