1988 (2) TMI 325

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....cals & Fertilizers Ltd. imported 1 case, Non-sparking Non-Magnetic Rust proof corrosion Resistant Tools valued at Rs. 1,44,744/- cif and sought clearance under OGL under Appendix 10 (4) of the Policy AM 82. The Customs, however, objected to the clearance on the ground that the goods imported are not permissible for import under OGL. 3. The Additional Collector of Customs, Bombay, who held the inquiry, after affording personal hearing, ordered confiscation but allowed redemption on payment of fine of Rs. 50,000/-. Hence this appeal. 4. Appearing for the appellants Shri Gandhi the learned advocate vehemently argued that the goods imported are spares within the meaning of the expression as defined in para 5 (11) of the Policy. He submitt....

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.... are only tools and nothing but tools. It was also the contention of Shri Mondal that the Policy covers tools and in that connection he referred to item 675 of Appendix 3 and item 547 of Appendix 5. Shri Mondal further submitted that there is clear distinction between tools and spares. They are functionally different. Shri Mondal also submitted that the Additional Collector did consider the appellants' plea that the goods supplied by the suppliers are cast tools and in that connection Shri Mondal referred to the following observations of the Additional Collector: "Forged tools are covered under S. No. 8 of item 675 in Appendix 3 by specific description. All other tools are covered by item No. 547 of Appendix 5. The party's argument that ....

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....in the same regard." To constitute a spare within its meaning it should firstly satisfy that it is a part or sub-assembly; or assembly secondly it should satisfy that the part or sub-assembly or assembly was for substitution i.e., ready to replace an identical similar part or sub-assembly or assembly if it becomes faulty or worn out. It is not clear how tools could replace a part or sub-assembly or assembly. 8. . Accessory or attachment is defined as "Accessory (or "Attachment") means a part, sub-assembly or assembly that contributes to the effectiveness of a piece of equipment without changing its basic functions." This definition again requires that accessory or attachment should be a part, sub-assembly or assembly and it is difficult ....