1990 (1) TMI 218 - AT - Customs

Import Tribunal: Color TV tubes not spares, subject to Import Policy restrictions. Confiscation upheld, fines modified.

The Tribunal held that the imported color T.V. picture tubes are components, not spares, under the Import Policy 1983-84. As the tubes are canalized ... Import Issues Involved:1. Whether the imported colour T.V. picture tubes are spares within the meaning of the Import Policy 1983-84, or alternatively, whether they are components of colour T.Vs.2. Whether the import of the colour T.V. picture tubes is covered under the Additional Licences produced by the appellant and whether their import is permissible.3. Whether there is any ambiguity in the interpretations of the provisions and whether the benefit of doubt, if any, should go in favour of the appellant.4. Whether there are any grounds to interfere with the orders of the confiscation of the T.V. tubes in question and the imposition of redemption fine.Detailed Analysis:Point No. 1:The term 'spares' as per the 1983-84 Import and Export Policy is defined in Para 5 (11) as a part or sub-assembly for substitution when it becomes faulty or worn out. The term 'component' is defined in Para 5 (10) as one of the parts or sub-assemblies of which a manufactured product is made up. The Tribunal found that the colour T.V. picture tubes imported by the appellant are used as parts or assemblies in the manufacture of T.Vs. and are not imported for replacement of faulty or worn-out tubes. Therefore, the Tribunal held that the colour T.V. picture tubes are components within the meaning of the relevant policy.Point No. 2:If the colour T.V. picture tubes are components, the scope of the licence must be determined in terms of Para 186 (8) of the A.M. 1983-84 Policy. Para 185 of the relevant policy allows export houses to import OGL items against REP licences for capital goods, raw materials, components, and consumables placed on OGL for actual users (industrial). However, Appendix 8 enumerates items whose import is canalised through public sector agencies, including T.V. picture tubes. Since T.V. picture tubes are canalised items, their import is not permissible under the additional licence in the relevant policy. The Tribunal also noted that the original adjudicating authorities proceeded on the basis that the imported materials are spares, but the validity of their orders must be judged by the reasons mentioned in their orders and cannot be supplemented by fresh reasons during the appeal.Point No. 3:The Tribunal found no ambiguity in the provisions of the relevant policy. The argument that earlier and subsequent policies allowed the import of T.V. picture tubes against additional licences was deemed irrelevant. The Tribunal held that the import and clearance of goods are governed by the policy announced by the Government from time to time, and the specific restrictions in the 1983-84 policy must be adhered to.Point No. 4:The Tribunal upheld the orders of confiscation of the T.V. tubes and the imposition of redemption fine. However, considering the extenuating circumstances and the conduct of the parties, the Tribunal reduced the redemption fine in appeals C-74/86 and C-75/86 from Rs. 35,000/- to Rs. 20,000/- each. The redemption fine in appeal No. C-116/86 was confirmed at Rs. 10,000/-.Conclusion:The appeals were dismissed, subject to the modification of the redemption fine in appeals C-74/86 and C-75/86. The appellants were entitled to consequential reliefs.