TaxTMI 
TaxTMI 
1991 (6) TMI 128
X X X X Extracts X X X X
X X X X Extracts X X X X
.... herein, imported a consignment of tyre, tube and flap sets for which thsy filed a Bill of Entry on February, 1989 and claimed the clearance against the entry at Sl. No. 46 of Appendix 6 of Import Policy 1988-91 and also claimed exemption under Notifications 185/88 and 342/76, dated 26-5-1988 and 2-8-1976 respectively. Entry 46 of Appendix 6 1988-91 Import Policy contains a list of various categories of importers who can import goods under an Open General Licence against the above-mentioned entry. The relevant entry for the purpose of this case is the category at (d), which is "Association of owners of vehicles in which the tyres are used and approved as such by the Department of Industrial Development of the Government of India." The Deput....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n which the said tyres are used and approved as such by the Department of Industrial Development of the Government of India in accordance with the scheme framed by them in this behalf. It was also submitted that the appellants were their authorised agents and could, therefore, lawfully import the goods. The Deputy Collector, however, held that the appellants and not the AIMTC, in whose name the Bill of Entry has been filed, are the real importers and that the appellants are not entitled to the exemption as also for the import under OGL. He pointed out that AIMTC is not Association of actual users recognised by the concerned State Director of Industries. Hence para 121(2) of the Handbook of Procedure for Import Policy will not apply. He poin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or obtaining DGTD Certificate on 30-12-1988 and the goods were being cleared only after ascertaining from the Department that the contract was duly registered. Therefore, they were eligible for exemption under Notification 185/88. As agents of the AIMTC in terms of para 121(2)(iv), the appellants could open a Letter of Credit on behalf of the Association by whom they were authorised to act as agents. This aspect has been omitted to be considered in the order of the Collector (Appeals). It is also not the case of the Department that the goods have been mis-used. The redemption fine on the goods is unjustified for which the Ld. Counsel cited the case of Collector of Customs v. Seth Enterprises - 1990 (49) E.L.T. 619 and the case ot Akbar Badr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rises for determination. As has been extracted above already, the category of eligible importers under OGL, relevant to the case, is Association of owners of vehicles in which the said tyres are used and approved as such by the Department of Industrial Development of the Government of India in accordance with the scheme framed by them. AIMTC had duly been registered by the Department of Industrial Development as evident by a letter dated 20-12-1988 from that Department to AIMTC which is the Ministry's letter of approval of AIMTC for import of specified categories of bus and truck tyres in terms of Notification 185/88. There is also a direction in the approval letter to register any contract for the import of tyres under the Notification wit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ognised by the concerned State Director of Industries and importing goods on behalf of their members. A careful reading of this provision would show that such Co-operative Societies and Associations of Actual Users acting as agents importing goods on behalf of their members can open letter of credit and make remittances. Such is not the case on facts in the case of the present import by the appellants. The provisions of para 121(2)(iv), would be attracted if AIMTC was acting on behalf of its constituent members as their agent. Another aspect, which would make this claim of the appellants untenable, is that such Co-operative Societies or Associations of Actual Users should be those recognised by the concerned State Director of Industries. No....