TaxTMI 
TaxTMI 
1985 (6) TMI 131
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....Manufacturers Ltd., imported a consignment of Hydrogen Compressors with Motors and spares and claimed clearance against import licence No. 1435300, dated 3-7-1978. The customs, however, objected to the clearance; firstly, on the ground that the compressors are capital goods and cannot be considered as components of Hydrogen Gas generating plant; and secondly, the item imported could not be correlated to any item listed in Appendix 5. The appellants by their letter dated 8-10-79 informed the Customs that the compressors were required for the hydrogen gas plant which they were manufacturing and supplying to Madhya Pradesh Electricity Board. They also contended that earlier they had been importing such compressors which were cleared. 3.&ems....
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....ix 5 of AM-79. The Public Notice 53/78, dated 28-7-78 was brought to the notice of the trade by a trade notice dated 16-8-78. It has no effect of invalidating the import. He contended that since the Public Notice, as has been rightly held by the Board, became effective from the date of trade notice, viz. 16-8-78 and much earlier to that the appellants had opened a Letter of Credit, import could not be objected to on the ground that the Public notice deleted entry No. 496 in appendix 5. Secondly, Shri Deshpande contended that the Collector had held that the compressors imported by the appellants are components. The appellants being actual users (Industrial) could import components as OGL items under Appendix 10(1) of the policy AM-79. Shri D....
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....9. Chapter XIV of the Hand Book of Imports-Export Procedures 1978-79 deals with unauthorised import. Paragraph 398 of this Chapter reads : "Valid Imports   Import is validly covered by a licence when the description, value and the quantity of imported goods are in accordance with the licence and when the shipment/dispatch of the goods from the supplying country takes place within the period of validity of the licence." There was no dispute as to the description, value and quantity of the imported goods. The dispute was with regard to the opening of letter of credit and the date of shipment. The shipment had taken place on 19-5-1979. The letter of credit was originally opened on 4-8-78 valid to cover shipment up to 1-12....
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....rding to the Board took place on 16-8-78 the date of which Trade Notice No. 85/78 was published. The licences that were issued after 28th July, 1978 would alone be govern by the Public notice and not the licences which were issued earlier to the date of Public Notice. The above proposition was settled by the decision of the Supreme Court in M/s. Bharat Barell & Drums Manufacturing Co. Pvt. Ltd. v. Collector of Customs, Bombay and another - AIR-1971 SC page 70. In the Supreme Court case, the licence was issued on June, 1962. At the time of the licence neither the licence nor the policy provided that the steel sheets required to be imported should be of prime quality. But by Public Notice No. 1/1-5/62, dated December 6th, 1962 required that t....