Import of incomplete watch case parts did not require a special licence, and confiscation and penalty were unsustainable.

Import of watch cases without backs, together with separate watch backs but without rings, was treated as import of incomplete watch cases and only parts of watch cases. Because such parts were permissible free of restriction, the filing of separate bills of entry on the same day did not convert them into complete watch cases for import-control purposes. A special licence was therefore not required, and the confiscation, redemption fine, and penalty were held unsustainable.

---

---

Issues: Whether the import of watch cases without backs, along with separate watch backs but without rings, amounted to import of complete watch cases so as to attract the requirement of a special licence and justify confiscation, redemption fine, and penalty.

Analysis: The imported consignments consisted only of watch cases without backs and separate watch backs, and the rings were not imported. The imported items were therefore incomplete watch cases and only parts of watch cases. Since the import of such parts was permissible free of restriction, the mere filing of different bills of entry on the same day did not convert the parts into complete watch cases for purposes of import control.

Conclusion: The import did not amount to import of complete watch cases requiring a special licence, and the confiscation, redemption fine, and penalty were held to be unsustainable. The appeals were decided against the Revenue and in favour of the assessee.

---