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Issues: Classification of imported drawings and designs under the Customs Tariff Act, 1962; Consideration of whether the imported drawings and designs are consumer goods necessitating a license for import.
In this judgment by the Appellate Tribunal CESTAT, Mumbai, the appellants had imported drawings and designs for their blast furnace plant, which were ordered to be confiscated under Section 111(d) of the Customs Act, 1962. The appellants appealed against the redemption fine and personal penalty imposed. The Tribunal analyzed the issue of classification under the Customs Tariff Act and whether the imported drawings and designs could be considered consumer goods requiring a license for import. The Tribunal first addressed the classification of the drawings and designs, noting that they were printed and rejected the claim for classification under 49.06 of the Customs Tariff. Referring to the HSN notes and a previous decision regarding technical/engineering drawings, the Tribunal confirmed the classification under Heading 4911.91, dismissing the appellants' claim for classification under 4911.99. Regarding the consideration of whether the imported drawings and designs were consumer goods necessitating a license, the Tribunal found merit in the argument that these items did not directly satisfy basic human needs but rather fulfilled an industrial need for setting up a steel manufacturing plant. The Tribunal interpreted the ITC HSN Classifications and the EXIM Policy to conclude that only goods falling under a specific category would require a license, which did not include the imported drawings and designs in this case. Consequently, the Tribunal allowed the appeal, setting aside the redemption fine and penalties imposed. In conclusion, the Tribunal allowed the appeal based on its findings related to the classification of the imported drawings and designs under the Customs Tariff Act and the determination that they were not consumer goods necessitating a license for import. The decision highlighted the importance of accurate classification under the Customs Tariff Act and the interpretation of relevant policies to determine the licensing requirements for imported goods.
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