Independent-functioning equipment is not a spare under import policy; confiscation sustained and penalty reduced as excessive.

An inclinometer capable of independent functioning was held not to qualify as a spare for a rotary kiln under the import policy governing Open General Licence. Its description in customs documents did not establish eligibility as a spare where the item was functionally an independent instrument. The finding that the goods were not importable as a spare was sustained, and the confiscation conclusion was upheld. The penalty, however, was reduced because it was considered disproportionate on the facts.

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Issues: Whether the imported inclinometer could be treated as a spare for the rotary kiln and allowed under the import policy, and whether the penalty imposed was excessive.

Analysis: The imported item was examined in the context of the import policy governing spares under Open General Licence. The deciding consideration was whether the inclinometer was merely an accessory or replacement part for the rotary kiln, or whether it was an independent instrument capable of functioning on its own. The finding was that the inclinometer could function independently and therefore did not satisfy the policy concept of a spare. Acceptance of its description in customs documentation did not establish eligibility under the import policy. On the facts, the conclusion of the lower authority that the goods were not importable as a spare was upheld. At the same time, the penalty was found to be disproportionate in the circumstances.

Conclusion: The claim that the inclinometer was a permissible spare under the import policy was rejected, and the confiscation finding was sustained. The penalty was reduced as excessive.

Ratio Decidendi: An item capable of independent functioning is not a spare for purposes of import-policy eligibility merely because it is intended for use with another machine; penalty may be reduced where it is found to be excessive on the facts.

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