1. In a consignment of waste paper / envelope cutting declared as Grade 31 P-S-94 of Waste Paper Specification, and on the finding of Custom that sheets in the return of serviceable paper were also under import, by this actual user, was not impugned but was found to be permissible, as Import of waste under heading 4707 of Custom Tariff by this Commissioner (Appeal). Therefore the change of misdeclaration etc was not upheld and the orders of the Lower Authority were set aside with consequent relief.
i) despite the fact that the entire import was in compressed bales, the fact of 10 bales contained serviceable white sheets of paper which was not bonafide waste and was to be considered as import not covered under heading 4707.90 of the Customs Tariff.
i) despite the fact that the entire impost was in compressed bales, the facts of 10 bales contained serviceable while sheets of paper which was not bonafide was to be considered as import not covered under 4707.90 and misdeclaration was to be upheld as established.
ii) the interpretation of HSN notes is in correctly made by the Commissioner (Appeals).
iii) in the consignment, two types of paper i.e. serviceable paper in sheet form and hard while envelope cuttings were found. The serviceable sheet should have been classified under 4805.
iv) Since 10 out of the 20 bales were having serviceable paper in sheet form, misdeclaration should have been upheld as 1994 (72) ELT 452 and other cases.
v) the plea of no control on supplier as upheld by Commissioner was not available in case of misdeclaration.
vi) Importer being actual user and import being for pulping need not be a reason to rule out attempt to import serviceable paper, relying upon Tribunal decisions.
i) CEGAT Delhi decision in case of appeal no. C/576 of 1994-C in case of M/s. Pundumjee Agro Industries Ltd on a similar import of 50% serviceable sheets of paper found in a compound declared as waste paper.
iv) Definition of Scrap specification circular 1994. Guidelines for paper stock: PS-94 Export transactions issued by institute of scrap Perycling Industries Ltd. i) Mumbai Custom House Public Notice dated 16/2/1995 as relied by respondents on the subject of Treatment of Waste Paper consignments and presents on Mutilation, and stipulates in paragraph 2 that if fine quality paper in original packing is found that would be a case of misdeclaration requiring action under Custom Act, 1962 and release after mutilation can not be granted. However if serviceable paper found is not in original packing, in small quantities; then consignments could be released on mutilation and sub para (a). The prescribe mutilation would be granted to pulp manufacturer importers. Therefore the ground taken of importer being on actual user and pulp manufacturer to be not relevant is to be not upheld. There is no material to establish the import of said serviceable paper in original packing. The Public Notice of Commissioner does not help the Revenues care to uphold misdeclaration action.
ii) the decision, relied upon by the respondents, grant benefit of import, as scrap, when on examination 50% serviceable paper in roll form was found and it allowed to an actual user, after setting aside the order of confiscation under Section 111(m) and penalty under Section 112. In this case, also we follow the case of M/s. Pudemji Agro India Ltd as we find no reason to differ with the same. The subject imports are to be allowed unmolested.
iii) The 50% of alleged serviceable paper is not proved to be in original packing and the same is imported in compressed bales.
Reading of HSN notes therefore induce us to grant the benefit of import as wastes paper, as for assessment it is relevant, how the goods are presented, at the time of import. Paper packed in compressed bales cannot be in original packing envisaged by the Custom House Public Notices. There are no grounds taken by the Revenue questioning the application of the International Waste Specific Standards, which permit the presence of such paper in 2 (PS-94 grade, of waste paper as was the case herein. Therefore, no reason is found to classify the imports other than as waste paper, as held by the Ld. Commissioner (Appeals).
iv) Once the consignment under import is classified as Waste, the consequent fines and penalty cannot be upheld. There is no infirmity in the order impugned, the same is to be upheld.