Decided on July 15,1991



Jyoti Balasundaram, Member (J) - (1.) THE validity of the import of goods purported to be wool waste and their valuation is the subject matter for consideration in this appeal.
(2.) THE appellants, who are manufacturers of woollen yarn, imported wool waste of the following description viz. job lot containing card droppings, condensor liable to contain some skin pieces having wool content about 80%. The indent dated 17.6.1985 was placed for a quantity of 2400 kgs. at a price of Sterling pence 140 per kg. cif. On arrival of the goods the importers filed a bill of entry for home consumption. The importers at the request of the Customs Department supplied the Department a copy of the test report furnished by Wool Testing Services International Ltd. of England showing that the goods contained 84.85% of wool. Samples were drawn from the bales and the test report revealed as under (i) three of five bales contained grey and white soft fibres and cut pieces of loosely spun yarn with incidental impurities. The test report said - -it is composed of all animal hair (rabbit hair) or mainly composed of animal hair. (ii) Remaining two bales contained: (a) White short fibres with a few bits of skin and composed of all animal hair and; (b) Black coloured short fibres and small cut pieces of loosely spun yarn, coloured yarn - -it is mainly composed of animal hair (rabbit hair) with wool fibre.
(3.) THEREFORE , a show cause notice was issued alleging that the goods were not wool waste covered by the Licence and that the value declared was not representative of the correct value. The adjudicating authority confiscated the goods under Section 111(d) holding that the import licence did not cover the goods in question and also imposing a penalty under.Section 111(m) for misdeclaration of the goods as wool waste. The lower appellate authority having confirmed the order of the Deputy Collector, this appeal has been preferred before us. We have heard Shri L.P. Asthana, earned Counsel and Shri J.N. Nair, learned DR and perused the documents.;

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