1983 (11) TMI 312

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....ned Section 111(d) of the Customs Act, 1962. 2. The facts giving rise to the dispute, in brief, are that the appellants produced for Customs clearance of the aforesaid goods an import licence No. 2897702 dated 12-2-1980. The said licence which was a R.E.P. licence for the export of leather goods bore an endorsement in the following terms :- "This licence will also be valid for import of OGL items under para 185 of Import Policy, 1981-82 subject to the conditions laid down and shall be non-transferable." The said para 185 provides that, on the import replenishment licences issued in their own names or transferred to them by others, Export Houses will be entitled to import inter alia "Raw materials, components, consumables and s....

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....the benefit of release similar goods in the past should be extended to them. Shri Balani also referred to Appendix 7 of the 1982-83 Policy to show that even goods like wheels and tyres are regarded as raw materials by the I.T.C. authorities. 4. Shri Gidwani, Sr. D.R. contended on behalf of the Respondent that the appellants were not actual users of the imported surgical threads. The goods are required for actual use, after sterilisation, by hospitals which were not industrial actual users. Appendix X, Sr. No. 128, specified "Sutures" but the imported goods were not "Sutures". 5. We have carefully considered the submissions of both sides. The CCCN Notes referred to by the appellants, though not directly relevant for our prese....

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....i has contended, do the present goods fall under Sr. No. 128 of List 6 of Appendix 10 which refers to "Surgical Sutures, blades and scalpels". 7. The question, therefore, arises whether the imported goods can be deemed to be raw materials permissible for import in terms of Sr. No. 1 for industrial actual users. As we have noted earlier, para 185 of the 1981-82 Policy permits Export House to import inter alia raw materials which have been placed on O.G.L. for Actual Users. Non-sterilised surgical thread is, in our view, certainly a raw material for manufacture of sterilised surgical suture. It would be permissible for import by an actual user, viz. an importer who has the facility for sterilising the non-sterile thread. Sterilisation....