KALRA IMPEX Vs. CC (SEA)

JUDGEMENT

(1.) The issue involved in this Appeal, filed by M/s. Kalra Impex is whether the goods namely pullover, cardigan/long coat, being exported by them are covered by Schedule of Duty Entitlement Pass Book Scheme (DEPB).

(2.) Ms. Reena Khair, learned Advocate, submitted that the Appellants filed four shipping bills for export of goods described as "articles of hosiery/knitwears made of woollen blended yarn (synthetic content in the blended yarn 65% or less than 65% by weight, but more than 50% by weight); that a show cause notice was issued to them for denying the DEPB Credit on the ground, inter alia, that the goods were not made of woollen blended yarn since the test report mentioned that the sample was a knitwear made of core spun yarns composed of polyester filament yarns with acrylic fibres and animal hair; that the Chemical Examiner also clarified that the animal hair present in sample was other than wool; that samples were got tested by Central Revenue Laboratory, Delhi and report mentioned that the samples were pieces of knitted garments made of blended yarn of animal hair, synthetic staple fibres of acrylic polyester filament yarn and viscose staple fibres; that the Commissioner, under the impugned Order, has held that the impugned goods are not eligible for export under DEPB Scheme, confiscated the goods with option to redeem the same on payment of fine and imposed penalty holding that the goods are neither woollen nor woollen blended yarn. The learned Advocate, further, submitted that the CRCL, Delhi's Report itself states that the garments are made of blended yarn and, therefore, it cannot be said that the impugned goods are not blended goods; that in spite of specific request that the goods should be tested by a specialized Textile Laboratory, the Revenue had not sent the sample to such a Laboratory which alone could give a considered opinion whether the animal hair in question is wool or not; that the Customs House Laboratory has simply opined without giving any reason that the animal hair present in the sample is not wool; that they have got the sample tested by the Regional Test House, Textile Committee which has reported the wool content ranging between 24.18% to 42.70%. She also mentioned that Shri Vijay Kumar Kalra, in his statement has stated that the wool was fine quality Mohair wool; that Hawley's Condensed Chemical Dictionary defines "Mohair" as "A natural fibre similar to wool obtained from Angora Goats"; that Fair Child's Dictionary of Textiles refers to the Wool Products Labelling Act of 1939 of the US where the term "wool" is defined as "the fabric from the fleece of the ship or lamb or hair of the Angora.."; that according to the said Dictionary Mohair is a kind of wool, the impugned goods are covered by the entry in DEPB rate Schedule.

(3.) Countering the arguments. Shri H.C. Verma, learned Department Representative reiterated the findings as contained in the impugned Order and emphasized that both the test reports of Customs House Laboratory and CRCL, Delhi had shown that the impugned goods are not made of woollen blended yarn; that the Chemical Examiner on query has clarified that the animal hair present in samples is other than wool.