TaxTMI 
TaxTMI 
1988 (1) TMI 141
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....83-84. The said para stipulates that Import licence issued in these cases will be subject to the condition that import of a single item of spares listed under Appendices 3, 4 & 30 of the Import Policy shall not exceed Rs. one lakh in value per item and import of other items will not exceed Rs. 10 lakhs in value (c.i.f.). The term 'single item' for the purpose of this para will have the same meaning as defined in sub-para 31(2) of the Policy Book. The appellants had earlier imported a consignment of ball bearing covered by Sl. No. 434 of Appendix 3 within the value limit of Rs. one lakh permissible for 'single item' of spares. The appellants claimed the release of these bearings falling under Sl. No. 86 of Appendix 4 against the stock and sa....
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....ed ball bearings against the licence, the balance available was only Rs. 2,409/-. He held that the goods were not covered by the licence. He ordered confiscation and gave the appellants an option to clear the goods on payment of fine of Rs. 83,000/-in lieu of confiscation. 3. An appeal was filed before the Collector of Customs (Appeals) Bombay. The appellants submitted that each appendices had to be taken separately for the purpose of determining the single item. According to them, the Dy. Collector had erred in clubbing the two entries on the ground that both these entries referred to ball bearings. The appellants also pointed out that the numbers of bills of entries along with Import licences to show that it had been the practice of th....
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.... of Appendix 4. It must also be mentioned that, earlier, the appellants had under the same licence imported ball bearings under Sl. No. 434 of Appendix 3. If the value of the earlier clearances of Sl. No. 434 of Appendix 3 items are taken into consideration as per the restrictions for stock and sale licence prescribed in the policy, then the balance available would be only Rs. 2,409/-. So, the entire controversy rests on the interpretation of term 'single ite' as defined in para 31(2) of the Policy Book. Para 80(1) of the Policy Book reads as follows:- "...... Import licences issued in these cases will be subject to the condition that import of a single item of spares listed in appendices 3, 4 and 30 of the Import Policy shall not exceed....
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.... (f) In the case of tools covered under entry No. 548 in Appendix 3, the maximum value for all the items covered therein, put together, will be Rs. 1.5 lakhs, but the import of a single item will not exceed Rs. 50,000/-." 8. Since para 80(1) refers to the sub-para 31(2) for the purpose of understanding the meaning of a single item, we have to find out the nature and scope of the term 'single item'. As rightly urged by Shri. Sogani, para 31(2) consists of two portions i.e. the first portion specifies that the item would count as one though it may be used in various sizes and specifications. They have given the examples of ball and roller bearings. They should be treated as a 'single item' irrespective of the sizes and specifications. But....
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.... appendices. The meaning of a 'single item' has a bearing on the same entry/sub-entry number. This should not be taken as including different entries under the different appendices. Such an interpretation alone would be consistent with the plain meaning of the paras in the policy. 10. If we advert to the facts of the case, in the above background, the entry at Sl. No. 434 of Appendix 3 had to be taken separately from the entry at Sl.No. 86 of Appendix 4. The authorities below have erred in clubbing the two entries together on the basis that both the entries referred to ball bearings. Obviously, there was some misapprehension in the interpretation because of the first limb of para 31(2) relating to different sizes and specifications. It w....