1998 (5) TMI 239

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.... 16/85. The entries are pattern grading machine and pattern making machine respectively. The goods were originally claimed under Open General Licence (OGL). 2. The Department was of the view that the goods, being a computer system would not be entitled to the benefit of notification and also proposed to deny clearance under OGL on the ground that the computers were listed in Appendix 2B Item 175 as a restricted item. Notice was issued proposing confiscation of the goods and denial of notification benefit. Appellant in its reply asserted the eligibility to the notification and to clearance under OGL. In the alternative, it requested clearance of the goods in terms of sub-para (2) of para 177 of the 1988-90 policy for which a REP lice....

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....or rendering service, occuring in para 7(8) of the Policy. 5. It is not possible to accept that the goods do not fall within the definition of the term "capital goods". The appellant intended to use the goods for marking and grading pattern for garments patterns. This they could do by utilising the polynest software which was also imported. The fact that the computer could be used for other purposes by using appropriate software will not restrict it from being used for production of goods by the appellant. So far as the appellant is concerned, it satisfies the definition of capital goods. 6. The licence which was issued for import of specified items permitted the licence to be utilised within the flexibility portion of Rs 22....

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....emsp;It is difficult to accept the contention that computers would have to be considered as included in Entry 148 of Appendix 2B which listed items restricted for import. Chapter 3 of the Policy specifically contains provisions relating to import of computer and computer based systems. Paragraph 37 of the Policy provides for import under OGL computers and computer based systems of specified minimum configuration. Para 38 also contains provisions of import of computer systems. It would be absurd to argue that these provisions would not apply because import of computers as electronic equipments or systems was restricted by entry 148. Apart from this, para 177, which detailed the imports to be made within the flexibility provision of a REP lic....