2005 (12) TMI 308 - AT - Central Excise

Summary

Issues: Validity of import of H.P. Grade/Super Precision Bearings under OGL, Confiscation of goods, Interpretation of DGTD clarification, Permissibility of import under OGL.

The judgment addresses the validity of the import of H.P. Grade/Super Precision Bearings under the Open General License (OGL) and the confiscation of these goods. Initially, the Commissioner of Customs ruled that the import of such bearings was not allowed under OGL at the relevant time, leading to confiscation with an option for redemption upon payment of a fine. The goods were confiscated by the Collector with a fine imposed. However, the Tribunal remanded the case for a fresh decision based on a clarification from the Directorate General of Technical Development (DGTD) indicating that the clearance of these bearings was indeed permitted under OGL. The Tribunal considered the DGTD clarification, which stated that the import of SN UP (Ultra Precision) bearings fell under OGL for the Machine Tool Industry as per the Import Policy 1985-88, subject to specified conditions. Based on the clear language of the DGTD clarification, the Tribunal concluded that the import was permissible under OGL, overturned the confiscation, and allowed the appeal. The judgment highlights the importance of interpreting official clarifications and policies in determining the permissibility of imports under specific licenses.

In conclusion, the Appellate Tribunal CESTAT, Mumbai, in the case concerning the import of H.P. Grade/Super Precision Bearings, emphasized the significance of official clarifications and policies in deciding the permissibility of imports under the Open General License (OGL). The Tribunal set aside the confiscation of the goods based on a clarification from the Directorate General of Technical Development (DGTD) that clearly stated the import of SN UP (Ultra Precision) bearings was covered under OGL for the Machine Tool Industry, as per the Import Policy 1985-88, subject to specified conditions. This ruling underscores the need for a thorough examination of relevant official documents and policies to determine the legality of imports under specific licenses, ensuring compliance with regulatory requirements and facilitating fair adjudication in customs matters.