TaxTMI 
TaxTMI 
1991 (8) TMI 102
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....p "Main Motor Assembly, Magnetic Clutch Assembly, Control Unit, Power Source Section". 1500 numbers of this component valued at Rs. 1,27,42,368 (1.27 crores) were sought to be imported. The Government granted a licence on 30-9-1982 for import of items valued at Rs. 3.73 crores, the annexure to which classified the item described above thus : S.No. Component Group 17. Main Motor Magnetic Clutch 18. Magnetic Clutch 19. Power Board Section 24. Control Unit The value of these and other components to be imported as given by the appellant was left undisturbed. In other words, the appellant was allowed to import components of the above description valued at Rs. 1.27 crores out of a total licence value of Rs. 3.73 crores (roughly 34%). The appellant made a revalidation application on 27-7-1984, seeking to import components, accessories and spares, of the value of Rs. 1.58 crores, Of these, 900 nos. were to be of the component "Copier Frame" falling under the above groups and valued at Rs. 71,14,534 roughly 53% of the total value of the imports applied for. However, the value of the licence granted was restricted to Rs. 80 lakhs which included 589 nos. of "c....
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....penalties as detailed above. 4. The appellants preferred appeals to the Central Excise, Customs and Gold (Control) Appellate Tribunal. The Tribunal dismissed the appeals in so far as the validity of the licence was concerned but they allowed them on the question of valuation. In regard to one item viz. cover glass, which was admittedly imported "over and above" the order, they directed a fresh appraisal of its value. Keeping in mind the relief given in respect of valuation, the Tribunal reduced the amounts of fine and penalty to the amounts set out in brackets earlier. On the first issue, the Tribunal disposed of the contentions in the following terms : "21. The list attached to the licence also shows that these parts cannot make a photocopier. The statement of 7-11-1986 given by Shri A.V. Athley, Chief Executive of the appellants clearly owned that the components imported in these consignments constitute complete photocopying machines "more or less". According to this statement only some electrical parts were required and plugs, cables, voltage stabilizers could be some of them. 22. We examined the list of imported goods in the light of the list attached to the licence. T....
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....The restriction not to import motor-cycles and scooters in C.K.D. condition was against an importer holding a licence in respect of the goods covered by entry 294 under which he could import complete and assembled motor-cycles and scooters, and not against an importer who had a licence to import parts and accessories under entry 295. (2) When the Collector examines goods imported under a licence in respect of goods covered by Entry 295, what he has to ascertain is whether the goods are parts and accessories, and not whether the goods, though parts and accessories, are so comprehensive that if put together would constitute motor cycles and scooters in C.K.D. condition, because, it would then mean that there is in the entry a limitation against importation of all parts and accessories of motor-cycles and scooters. Such an approach, would be acting contrary to and beyond entry 295, and in non-compliance of the entry and would lead to the anomalous result that even if the importer had sold away one consignment or part of it, the Collector could still say that had the importer desired it was possible for him to assemble all parts and make motor-cycles and scooters in C.K.D. condition....
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.... (i) the nature or extent of violation of the terms of the licence by the appellants and (ii) the quantum of the redemption fines and penalties. So far as the former is concerned, the Tribunal has been somewhat cryptic. It has no doubt observed that several items imported by the assessee are not covered by the terms of the licence. As has been mentioned earlier, each of the licences contained a large number of items of components which are permitted to be imported. The Collector has set out in his orders, the extent of items which, according to him, are, and which are not, covered by the licence though the value of the items which have been imported without a licence is not quite clear. The Tribunal, however, has concentrated on only one of these items, namely, "main frame", perhaps by way of illustration. They have indicated that this expression means only the bare frame and that a large number of components which do not form part of the main frame have been sought to be imported as parts of the main frame. This is also the item we have earlier referred to. We confess we have not been able to fully understand the nature of the claim made by the assessee or the interpretation given....
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....iolation of the terms of the licence as has been made to appear. While, therefore, it does appear that some of the components (such as cover glass, and some of the components imported by the assessee) were not covered by the licence, it is not quite clear to what extent the components claimed by the assessee to form part of the main frame or drum assembly are not covered by the licence. 9. So far as the second aspect is concerned, there are certain circumstances that need to be taken into account. It is clear, as pointed out on behalf of the appellant, that the consideration that the component parts imported could be assembled to constitute substantially the whole of the photocopier machine is irrelevant; the question is, to what extent there was import of unlicensed component parts. The Tribunal has agreed with the assessee that, "in interpreting the terms of the licence and judging its suitability (sic), extraneous considerations like the requirements of the phased manufacturing programme" should not be taken into account. They have also accepted the assessee's plea that no mutuality of interest had been established between the importers and the suppliers calling for a rejecti....