Imported adhesive used in manufacturing held to be raw material, not consumer goods, under the Import Policy.

Imported adhesive goods used through machinery in book-binding were treated as industrial raw materials rather than consumer goods. The product literature and operating manuals showed that the goods were applied in a manufacturing process for gluing and case sealing, including high-temperature use. Applying Para 7(34) of the Import Policy 1992-97, materials required for a manufacturer's process, whether previously manufactured or processed, fall within raw material. Goods that do not directly satisfy human needs are not consumer goods, and were therefore not liable to confiscation under Section 111(d) of the Customs Act, 1962.

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Issues: Whether the imported adhesive goods were consumer goods liable to confiscation for import without licence, or industrial raw materials covered by the Import Policy 1992-97.

Analysis: The goods were used by the respondents in machines for binding hard-bound and perfect-bound books. The product literature and operating manuals showed that the goods were applied through machinery, involved high-temperature use, and were meant for gluing and case sealing in the manufacturing process. Under Para 7(34) of the Import Policy 1992-97, raw material includes materials required for a manufacturer's process, whether previously manufactured or processed. The imported goods therefore answered the description of raw material and not consumer goods directly satisfying human needs.

Conclusion: The goods were not consumer goods and were not liable to confiscation under Section 111(d) of the Customs Act, 1962; the appeal failed.

Ratio Decidendi: Goods used as inputs in a manufacturing process, even if ready for application through machines, are raw material and not consumer goods if they do not directly satisfy human needs.

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