- (1.) Heard the learned counsel for the parties.
(2.) The appellants imported old, used and premutilated synthetic rags. On the basis of Import Export Policy of 1988-91 which inter alia permitted the import of woollen rags/synthetic rags/shoddy wool in completely premutilated condition under OGL. These goods were examined in the presence of Appraiser, AC (DCP), DC (Customs), Textile Production Representative, Customs House Agent and the importer. It is the case of the appellants that the imported goods were as a matter of fact used for converting into shoddy yarn.
(3.) The respondent decided to levy 10% penalty on the consignment imported by the appellants as a condition precedent for allowing the import. The learned counsel for the appellants contended that in view of the definite finding recorded in the notes prepared by the Examination Committee, there is no question of levying any penalty. The levy of penalty was upheld by the Division Bench of the Rajasthan High Court in DB Civil Special Appeal (Writ) No. 436 of 1992 by its order dated 6.8.1992. The present appeal is directed against the said order.;