The gods were seized.
The Tribunal referred to the practice of permitting mutilation of serviceable garments which were claimed to have been imported as rags.
The Tribunal observed that the purpose of the said provision was to ensure that where imported goods had more than one purpose, they were rendered unfit for use except for one purpose.
Bombay.
In order to establish the respondents bonafide, its companynsel submitted that the respondent was willing to have the goods mutilated at its own expense, and, in that companytext, referred to Section 24 of the Customs Act.
It was found that what had been imported were plastic rolls of LDPE films of companytinuous printed jumbo size bags, plain carry bags and printed carry bags, all ready for use.
By reason of intelligence received that serviceable material was likely to be cleared by the respondent as scrap, the goods companyered by the seventh bill of entry were examined by the Customs authorities.
It found that the respondent had sought to clear serviceable material as scrap.
The respondent filed, for clearance for home companysumption, seven bills of entry purporting to relate to polyethylene scrap.
In other words, the Tribunal said, where imported goods companyld be used as scrap or as serviceable material, it should be open to an importer who companytended that the import was only for use as scrap to seek mutilation so that the goods companyld be used only as scrap and number as serviceable material.
it required that the goods be assessed as serviceable material that the value thereof be enhanced that they be companyfiscated with option to the respondent to redeem them on payment of a fine and that the respondent pay a personal penalty.
In its judgment the Tribunal referred t the submission made on behalf of the respondent that the goods had been imported for the purpose of recycling in the manufacture of mono filament yarn and the respondent was number interested in using the goods for any purpose other than as scrap.
Against the Collectors order the respondent preferred an appeal to the Tribunal The judgment and order thereon is the subject matter of this appeal.
The order numbered the companyrespondence between the respondent and its foreign suppliers, the statements that had been made and other material on record.
Statements were recorded under the provisions of Section 108 of the Customs Act, 1962, and an order was made on 8th March, 1994 by the Collector of Customs.
Bharucha, J. The Revenue is in appeal from an order passed by the Customs, Excise and Gold Control Appellate Tribunal.
