P.K. Kapoor, Member (T)

1. This is an appeal against the order passed by the Collector of Customs (Appeals), Calcutta. Briefly stated the facts of the case are that the appellants imported 12 metric tonnes of LDPE powder valued at Rs. 2,54,943. The goods were allowed to be warehoused and 75% of the imported material was permitted to be ex-bonded after assessing the goods provisionally pending test. Out of 12 samples sent for test by the Central Revenues (Control) Laboratory, New Delhi, 10 samples were coloured irregular chips composed of synthetic resin, wax, organic colouring matter and inorganic filler. Out of the remaining 2 samples, one was found to be composed of synthetic resin, wax, inorganic pigment (Ti-02) and inorganic filler and was described as a preparation based on Titanium Dioxide (pigment), and the second one was found to be a preparation based on other colouring matter. On 20-9-1991, the Assistant Collector issued a show cause notice to the appellants alleging that the imported goods were preparations based on organic/inorganic/other colouring matter. The show cause notice referred to Note 3 to Chapter 32 and alleged that the crayons for which the goods had bee