Circular No. 338/54/97-CX
dated 3/10/97
F.No. 387/90/96-JC

Government of India

Ministry of Finance

Department of Revenue, New Delhi

Subject: Import of “Acrylamide” for use in the manufacture of leather goods i.e. shoe uppers, leather bags etc., meant for export-levy of Customs Duty- Clarification Reg.

I am directed to say that some of the importers imported “Acrylamide” and claimed duty free clearance under Notification No. 203/92-Cus as “Synthetic Adhesive” for use in the manufacture of leather goods i.e., shoe upper, leather articles, bags etc. In one of the cases, that Asstt. Commrs. of Customs as rejected the claims of the importers for duty free clearance of “Acrylamide” but subsequently the importers have managed to get favourable order at the lavel of Commr. of Customs (Appeals) reportedly by misrepresenting the facts.

The Department has agitated the matter before CEGAT but the CEGAT has dismissed the Department”s Appeal on the ground of delay in filing the Appeal. The Department has finally filed a Civil appeal before the Hon”ble supreme Court of India.

The Central Intelligence Unit of the Mumbai Custom House based on an intelligence had made investigation into the duty free clearance of “Acrylamide” as “Synthetic Adhesive” in DEEC against leather goods advance licences. The Central Intelligence Units has reported that the importers of “Acrylamide” has wrongly availed of Customs Duty exemption by not only misrepresenting the facts but also on the basis of manipulated/ fabricated documents. The opinion of Central Leather Institute of Madras had been obtained which goes to show clearly that “Acrylamide” is neither a “Synthetic Adhesive” nor is used as “Adhesive” in the manufacture of leather goods.

The matter has been examined by the Board, on the merits of the case, the Department has preferred an appeal before the Hon”ble Supreme Court in this case. In the meanwhile, it is clarified that “Acrylamide” is not entitled to the benefit of Customs Duty exemption under Notification No. 203/92-Cus as claimed by the importers.

(A.K. Roy)
Deputy Secretary (R)

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