Import policy restriction for bearings applies to engine parts treated as bearings, even when described as spares

Imported cam shaft metal, piston pin metal and related components were treated as bearings on technical examination because the machinery expert's report and inspection material showed them to function as engine bearings and bushes. Their description as spares did not change that character, so the specific import policy restriction and value limit for bearings continued to apply and the goods could not be cleared as unrestricted OGL spares. The confiscability and penalty were maintained, although the redemption fine was reduced.

---

---

Issues: (i) Whether the imported cam shaft metal, big end metal of piston, piston pin metal and related items were bearings covered by the restricted import entry, and (ii) whether the goods could nevertheless be imported as spares under OGL without being subjected to the value restriction applicable to bearings.

Issue (i): Whether the imported cam shaft metal, big end metal of piston, piston pin metal and related items were bearings covered by the restricted import entry.

Analysis: The goods were examined against the machinery expert's report, which described the items as split type thin-walled bearing, thick bush bearing, shell type thin-walled bush bearing and split type thick-walled bearings. The technical material and the inspection report showed that the imported items functioned as engine bearings and bushes, and the report was not effectively challenged. On that basis, the goods fell within the restricted bearing entry in the import policy.

Conclusion: The goods were correctly treated as bearings covered by the restricted import entry, against the assessee.

Issue (ii): Whether the goods could nevertheless be imported as spares under OGL without being subjected to the value restriction applicable to bearings.

Analysis: The plea that the goods were spares for diesel generating sets did not alter their character as bearings. Once the policy placed a value restriction on bearings under the relevant entry, the same goods could not escape that restriction merely by being described as spares. The classification contention under the tariff therefore did not displace the import policy restriction.

Conclusion: The goods remained subject to the import restriction and could not be cleared under OGL as unrestricted spares, against the assessee.

Final Conclusion: The finding of confiscability and the imposition of penalty were maintained, but the redemption fine was reduced in the interests of justice.

Ratio Decidendi: Where imported goods are found on technical examination to be bearings, their import remains governed by the specific policy restriction and the value limit cannot be bypassed by characterising them as spares.

---