Import policy attestation protected non-electronic components, but electronic sub-units remained outside the scheme and liable to confiscation.

Under the phased manufacturing programme, DGTD attestation of an import list protected non-electronic components covered by the authorised scheme, and confiscation could not be sustained merely because the consignment could be assembled into a complete machine. The policy, however, excluded electronic components from the attestation procedure. On that basis, the control panel and pendant, treated as electronic sub-units, fell outside the policy benefit and remained liable to confiscation. A later DGTD clarification could not validate an import that the policy itself prohibited. Confiscation was therefore set aside for the non-electronic components, upheld for the control panel and pendant, and the redemption fine was reduced.

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Issues: Whether the confiscation and redemption fine imposed on imported components could be sustained in respect of the components covered by the DGTD list attestation and, separately, the control panel and pendant treated as electronic components.

Analysis: The import was made under a phased manufacturing programme and the DGTD had attested the list of components. For the non-electronic components, the attestation under the relevant import policy was within the authorised scheme and could not be ignored merely because the consignment, viewed as a whole, was capable of being assembled into a complete machine. However, the policy specifically excluded electronic components from the list attestation procedure. The control panel and pendant were electronic sub-units and therefore fell outside the scope of the attestation procedure and outside the benefit claimed under the cited policy provisions. The later clarification from DGTD could not validate an import that the policy itself prohibited.

Conclusion: Confiscation was not justified for the components other than the control panel and pendant, and that part of the order was set aside. Confiscation of the control panel and pendant was upheld, but the redemption fine was reduced to Rs. 40,000.

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