Commissioner of Customs Vs. Shrushti Garments Pvt. Ltd. - Court Judgment

Excerpt:
1. this is revenue's appeal against order-in-appeal no. 1279/98, dated 21-12-98.2. the respondents imported printed polybags with hanger for export of their garments. there is a specific logo in the polybags namely "quick silver". this is the logo of foreign buyer. all these hangers are used by the importer for using them in the export of garments. revenue's contention is that the imported items are consumer goods and required sil. the original authority held that the imported goods are liable for confiscation. he imposed redemption fine of rs. 13,000/-. the respondents appealed to the commissioner (appeals). the commissioner (appeals) held that as the polybags imported are already stamped with the logo of the buyer, they cannot be sold to any other persons in india. in that sense they cannot be treated as commercial goods and sil is not required to cover these goods which are ultimately exported along with the garments. hence, he allowed the appeal of the respondents. aggrieved over the decision of the commissioner (appeals) on the ground that under similar circumstances there is another order by commissioner (appeals) holding that the goods required import licence, revenue has filed this appeal.3. shri a.k. jayaraj, id. counsel appeared for the appellants and smt.r. bhagya devi, id. sdr for the revenue.4. we have gone through records of the case carefully. the departmental representative was not in a position to confirm whether the order-in-appeal dated 19-11-1997 favourable to the revenue has become final or not. in any case, we are in agreement with reasoning of the commissioner (appeals) in the impugned order. the polybags imported carry the logo of the buyer "quick silver". hence they cannot be sold to other persons in india. normally the consumer goods can be freely sold to the consumers. as far as the goods imported are concerned, there is no consumer for them in india because all the polybags are used for export of garments. hence we agree with the view taken by the commissioner (appeals) that these imports do not require any licence.hence, we reject the revenue appeal.(operative portion of the order was pronounced in open court on 13-9-2005)

Judgment:
1. This is Revenue's appeal against Order-in-Appeal No. 1279/98, dated 21-12-98.

2. The respondents imported printed polybags with hanger for export of their garments. There is a specific logo in the polybags namely "Quick Silver". This is the logo of foreign buyer. All these hangers are used by the importer for using them in the export of garments. Revenue's contention is that the imported items are consumer goods and required SIL. The original authority held that the imported goods are liable for confiscation. He imposed redemption fine of Rs. 13,000/-. The respondents appealed to the Commissioner (Appeals). The Commissioner (Appeals) held that as the Polybags imported are already stamped with the logo of the buyer, they cannot be sold to any other persons in India. In that sense they cannot be treated as commercial goods and SIL is not required to cover these goods which are ultimately exported along with the garments. Hence, he allowed the appeal of the respondents. Aggrieved over the decision of the Commissioner (Appeals) on the ground that under similar circumstances there is another order by Commissioner (Appeals) holding that the goods required import licence, Revenue has filed this appeal.

3. Shri A.K. Jayaraj, Id. Counsel appeared for the appellants and Smt.

R. Bhagya Devi, Id. SDR for the Revenue.

4. We have gone through records of the case carefully. The departmental representative was not in a position to confirm whether the Order-in-Appeal dated 19-11-1997 favourable to the Revenue has become final or not. In any case, we are in agreement with reasoning of the Commissioner (Appeals) in the impugned order. The polybags imported carry the logo of the buyer "Quick Silver". Hence they cannot be sold to other persons in India. Normally the consumer goods can be freely sold to the consumers. As far as the goods imported are concerned, there is no consumer for them in India because all the polybags are used for export of garments. Hence we agree with the view taken by the Commissioner (Appeals) that these imports do not require any licence.

Hence, we reject the Revenue appeal.

(Operative portion of the order was pronounced in open Court on 13-9-2005)