2001 (1) TMI 503

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....s it under Exim Code No. 852390 03.90 requiring specific import licence. 2. The appellants had imported 45,500 pieces of the Blank Cassettes of the type described above valued Rs. 14,86,143.75 and filed Bill of Entry dated 30-12-1999 for their clearance under OGL claiming classification of the same under Exim Code No. 852390 03.20. From the product catalogue the Revenue found that the said cassettes are for the exclusive use with VHS/VCR. Since the Exim Code No. 852390 03.20 covers "1/2" Video cassettes suitable to work with Betacam/Betacam SP M.II S-VHS/Digital-S Type VCR", the Revenue felt that the impugned cassettes would not merit classification under the said Exim Code No. 852390 03.90 the import of which requires specific licenc....

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....tical video cassettes were allowed clearance by Calcutta Custom House in the past classifying the same under Exim Code No. 852390 03.20 and without insisting for import licence. He invites attention to para 4.13 of Chapter 4 of the Exim Policy 1997-2000 according to which interpretation of the Policy rests with the Directorate General of Foreign Trade (DGFT) and the DGFT vide their letter dated 14-3-2000 addressed to Shri A.K. Raha, Commissioner of Customs, Calcutta clarified that the impugned cassettes are suitable for work with both the S-VHS/VHS type VCRs. The ld. Advocate has also referred to the letters dated 17-12-99 and 5-1-2000 of the DGFT addressed to the Commissioner of Customs, Calcutta and letter dated 30-8-1999 addressed to Joi....

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....ind greater force in the arguments of the ld. Advocate inasmuch as the word "suitable" in the entry against Exim Code No. 852390 03.20 shall cover any or all ½" video cassettes that can work on S-VHS video cassettes. It is on record that it was demonstrated before Deputy Commissioner of Customs that the impugned cassettes can work on the S-VHS type of VCR. I agree with the ld. Advocate that it is wrong to read the word "suitable" to mean "super picture clarity and sound fidelity". When the impugned cassettes are capable of being used in S-VHS type of VCR it can be considered to mean that the same are suitable for use with such type of VCR and as such merit to be classified under the Exim Code No. 852390 03.20. Moreover, there is a ca....