KHATEMA FIBRES LTD. Vs. COMMR. OF CUS., ICD

JUDGEMENT

(1.) The appellant challenges the order of the Commissioner of Customs (Appeals) made on 28 -2 -2001 dismissing the appeal and confirming the order of the Additional Commissioner (Imports) by which the goods imported under the bill of entry 112430, dated 11 -10 -2000 were confiscated under Section 111(m) of the Customs Act, 1962 and a penalty of Rs. 50,000/ - was imposed on the appellant under Section 112(a) of the said Act. The Additional Commissioner also directed that the goods will be assessed to duty under sub -heading 4819.20 and CIF value be taken corresponding to US 1000 PMT and duty charged accordingly.

(2.) The appellant had filed bill of entry no. 112430, dated 11 -10 -2000 for clearance of Waste Paper and White Sulphate carton declaring value of the goods at Rs. 2,45,1537 -. Show Cause Notice dated 17 -11 -2000 came to be issued on the ground that on examination, the goods were found to be folding cartons/boxes (printed) of non -corrugated paperboard. In response to the show cause notice, the appellant filed reply on November 18, 2000 inter alia, contending that they imported container containing pre -consumed white sulphate cartons and since this item was rejected at the converting stage, the material was sold as a waste for recycling. A certificate from the supplier was enclosed showing it as waste. It was also stated that all the material imported was subject to actual consumption and supported by consumption certificate issued by the Range Commissioner. The appellant also stated that importers were having their own paper manufacturing facilities and the goods were subject to end -use certificate and could not be used for any purpose other than recycling. The appellant claimed benefit of the Notification Nos. 18/2000 S. No. 34,16/2000 S. No. 122.

(3.) The Additional Commissioner found the goods to be folding cartons/boxes (Printed) of non -corrugated board and rejected the contention that material was waste paper falling under sub -heading 4707.90 holding that it was classifiable under sub -heading 4819.20 since the goods imported were not waste paper but usable cartons. The Appellate Authority had seen the samples produced before it and found that paperboards when properly assembled, formed into printed open boxes with lids provided for in the assemblage to enclose them. It was held that goods were presented as folding cartons/boxes on pallets and they were not in mutilated form. He relied upon the decision of the Supreme Court in Commissioner v. Supreme Woollen Mills Ltd. - 1999 (107) E.L.T. 453 and found no reason to interfere with the order of the Additional Commissioner.