Collector of Customs vs Nahar Financial and Investment Ltd.

Respondents, it appears, imported 31 bales of 'synthetic waste' in the year 1982 through Bombay Port. The Department classified the imported goods under Tariff Item 18-IV and imposed countervailing duty also. On appeal to the Collector, the said order was set aside on the basis that the goods imported were spinning waste arising during the conversion of man-made fibres as yarn and not waste arising in relation to manufacture of fibre itself or man-made filament yarn. The matter was carried further by the Department to the CEGAT unsuccessfully. Hence this appeal.

The Tribunal relied upon the decision of the Bombay High Court in R.K. Synthetics and Fibres Pvt. Ltd. Vs. Union of India, , and had taken the view as follows :-

"On a plain reading of Item No. 18-1(1) it is clear that it includes man-made fibres non-cellulosic as well as cellulosic but does not include waste. If the synthetic waste which was imported by the petitioners does not fall under Item No. 18-1(1) then the residuary Item No. 68 would be attracted and the petitioners will have to pay the countervailing duty accordingly."

It was pointed out before the CEGAT that Department had not produced any material to show that the goods in question would not be a 'waste' and it was submitted that the decision in R.K. Synthetics and Fibres Pvt. Ltd. (supra) would squarely apply to the facts of the case. It is in those circumstances the Tribunal declined to interfere with the order made by the Collector. We find the decision in R.K. Synthetics and Fibres Pvt. Ltd.'s case does not seem to have been carried to this Court and the Tribunal having held that on the material available before it, they had to hold that it was 'waste' and not otherwise. When the Tribunal has come to the conclusion on facts, we are not inclined to interfere with the same.

The appeal is, therefore, dismissed.