1983 (4) TMI 268 - AT - Customs

Summary

Issues: Interpretation of entry Sorbitol at Sr. No. 392 of Appendix 5; Validity of import licenses for Sorbitol solution; Classification of Sorbitol and Sorbitol solution; Grant of detention certificate

Interpretation of entry Sorbitol at Sr. No. 392 of Appendix 5:
The appeal involved a dispute regarding the interpretation of the entry for Sorbitol at Sr. No. 392 of Appendix 5 of the Import Trade Control policy. The appellant contended that Sorbitol solution 70 per cent USP should not be covered under this entry as it was distinct from Sorbitol powder. The appellant's argument was based on references to the U.S. Pharmacopeia and Remingtons Pharmaceuticals Sciences. However, the Departmental Representative argued that Sorbitol was a generic term covering all grades and formulations, including the solution. The Tribunal agreed with the Departmental Representative, stating that the chemical authorities cited by the appellant did not support the argument that Sorbitol solution was separate from Sorbitol powder. The Tribunal found no justification for drawing a distinction between the two and upheld the lower authorities' orders.

Validity of import licenses for Sorbitol solution:
The appellant had submitted licenses endorsed for permission to import goods under Open General License (O.G.L). The issue was whether these licenses were valid for the import of Sorbitol solution 70 per cent USP. The Departmental Representative argued that since Sorbitol was a restricted item, its import under O.G.L was not permissible. The Tribunal agreed with the Departmental Representative, stating that the licenses were not valid for the import of the goods in question. The Deputy Collector's order of levying a fine was deemed correct and legal in this regard.

Classification of Sorbitol and Sorbitol solution:
The classification of Sorbitol and Sorbitol solution as separate entities was a key point of contention in the appeal. The appellant argued that the two commodities were distinct based on chemical literature and industry practices. However, the Departmental Representative contended that Sorbitol solution was a grade of Sorbitol and not a separate article. The Tribunal agreed with the Departmental Representative, stating that the chemical composition of Sorbitol powder and Sorbitol solution was the same. The Tribunal found that the quotations provided by the appellant confirmed that Sorbitol was a generic term covering all its grades, including the solution.

Grant of detention certificate:
The appellant requested a detention certificate, which was explained as a recommendation to reduce or waive demurrage charges. The Tribunal clarified that the grant or denial of a detention certificate was not governed by the Customs Act and therefore was not a subject matter for appeal to the Tribunal. The Tribunal did not consider this request in the appeal as it was not part of the Deputy Collector's or the Appellate Collector of Customs' orders. The appeal was dismissed based on the above findings and confirmations of the lower authorities' orders.