Industrial user status for processing coils upheld, allowing clearance under Open General Licence.

Processing activity consisting of slitting, trimming, rewinding and welding of colour coated and uncoated coils and strips was treated as industrial use because it rendered defective coils usable. Certificates from competent authorities and an industrial licence under the Industrial Development and Regulation Act, 1951 supported the importer's industrial character. On that basis, the Tribunal held that the importer qualified as an Actual User (Industrial) under the policy and could clear the goods under Open General Licence.

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Issues: Whether the importer was an Actual User (Industrial) entitled to clear defective steel coils under Open General Licence.

Analysis: The appellant produced certificates from the competent authorities showing that the activity undertaken in its factory consisted of slitting, trimming, rewinding and welding of colour coated and uncoated coils and strips. The Tribunal noted that these operations were carried out to render the defective coils usable and that a licence issued under the Industrial Development and Regulation Act, 1951 supported the appellant's industrial character. Relying on the principle that such processing activity requires a licence and is consistent with industrial user status, the Tribunal held that the appellant fell within the meaning of Actual User (Industrial) under the Policy.

Conclusion: The appellant was entitled to be treated as an Actual User (Industrial) and to clear the goods under Open General Licence.

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