TaxTMI 
TaxTMI 
2019 (1) TMI 333
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....restricted / prohibited). The imported goods contained both used machine tools as well as hand tools. The contention of the appellants conveyed vide letter dt. 03.09.2009 to the original authority was that as per para 9.12 of the Foreign Trade Policy (FTP), "capital goods" means any plant or equipment or machinery or accessories required for manufacture or production directly or indirectly including machine tools. Original authority vide an order dt. 07.05.2009 held that in terms of para 2.17 of the FTP, used hand tools are restricted for import and require a licence, hence ordered confiscation of the goods cumulatively valued at Rs. 13,56,918/- under Section 111(d) of the Customs Act, however allowed them to be redeemed on payment of fine ....
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....on covering 'equipment' cover 'hand tools' also as per the meaning given in Webster's dictionary. Reliance is placed on the decision of The Supreme Court in CST Vs Taj Mahal Hotel 1971 (3) SCC 550 and in Regional Director ESIC Vs Highland Coffee Works, 1991 (3) SCC 617. (iv) The appellants have taken a stand that in Chapter 5 of Foreign Trade Policy relating to EPCG scheme, at para 5.2 it is stated capital goods shall include spares (including refurnished/reconditioned spares), tools, jigs, fixtures, dies and moulds. As per Mcgraw Hills Dictionary of Science & Technology cited by Honourable Calcutta High Court in the decision in 1993 (66) ELT 594, tool is a any device, instrument or machine for the performance of an operation to equip a fa....
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....required for manufacture of production either directly or indirectly of goods or for rendering the services. However, the hand tools by their very nature and size will not come within the category of such 'capital goods'. For that reason, there is no specific mention of hand tools in the said definition. Hence there is no infirmity in the impugned order. 4. Heard both sides and have gone through the facts. 5.1 True, the definition of "capital goods" as found in para 9.12 of the FTP does not specifically mention "hand tools". It is also true that details that have found mention are "machine tools". However, what is important to be adjudged is whether "hand tools" will fall within the scope of machinery, equipment or accessories required fo....
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....re a specific licence for their import. It appears the said order of Commissioner (Appeals) has not been appealed against by the department, in which case, the said ratio would be binding on the Department. We also note that the Commissioner (Appeals) in that order, has relied upon a Tribunal decision in the case of CC Nhava Sheva Vs Gripwell Forgings & Tools - 2002 (146) ELT 136 (Tri.-Mumbai) which has inter alia, held that definition of "capital goods" in the import policy is extremely wide and that tools are covered by the term "equipment" and are 'capital goods'. The relevant portion of the said Tribunal's order is produced as under : "5. I now turn to the tools. The nature of the tools is not specified. It is not clear whether they ar....