1987 (6) TMI 217 - AT - Central Excise

Tribunal rules in favor of appellants, sets aside fine and confiscation order for exceeding spares limit with capital goods.

The revision application against the order-in-appeal was transferred to the Tribunal. A fine of Rs. 15,000 was imposed in lieu of confiscation for ... Spares of machine tools Issues:- Transfer of revision application to the Tribunal- Imposition of fine in lieu of confiscation for import of spares along with capital goods- Interpretation of import policy regarding permissible limit of sparesTransfer of Revision Application to the Tribunal:The judgment states that the revision application filed against the order-in-appeal was transferred to the Tribunal for consideration. Despite the initial lack of representation by the appellant, a letter was submitted requesting a hearing on the merits. Following this, the departmental representative was heard, and the records were reviewed.Imposition of Fine in Lieu of Confiscation:The case revolved around the imposition of a fine of Rs. 15,000 in lieu of confiscation for the import of spares along with capital goods exceeding the permissible limit. The appellants imported machinery with spares, surpassing the allowable value by Rs. 44,651. The Dy. Collector ordered confiscation due to the excess spares but allowed redemption upon payment of the fine. The appellants' appeal before the Appellate Collector was unsuccessful.Interpretation of Import Policy Regarding Permissible Limit of Spares:The appellants contended that they were actual users requiring the imported spares for their factories. They argued that the spares did not fall under restricted appendices and should not be subject to the 5% limit imposed on spares accompanying capital goods. The respondent collector supported the authorities' decision, citing the breach of the 5% limit on spares with capital goods. The judgment referenced a previous case with a similar issue, emphasizing that no value restrictions were imposed on permissible spares under the import policy. Following the precedent, the Tribunal allowed the appeal, setting aside the confiscation order and fine, granting the appellants consequential relief.