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Issues involved:
Interpretation of Import and Export Policy, 1983-84 regarding classification of staplers as industrial staplers. Analysis: The case revolves around the interpretation of the Import and Export Policy, 1983-84 regarding the classification of staplers as industrial staplers for the purposes of import. The applicant, a manufacturer of garments with a REP license for importing industrial staplers, imported staplers HD-10. The counsel for the applicant argued that the policy should be understood in light of its objective to provide materials for manufacturing exported products. Appendix 17 of the Policy includes references to industrial stapling machines used in garment manufacturing processes. The authorities found that the stapling machine imported by the applicant was indeed used in the manufacturing process of garments, such as stapling polythene bags, affixing slips of paper, and other tasks in garment production. The counsel argued that since items specified in Appendix-17 are used in garment manufacturing, their import should be permissible if used in the industry. Reference was made to a previous court decision allowing the import of stapler pins for garment packing. The Revenue contended that the REP license does not allow the import of prohibited items, citing the prohibition of staples import in the Policy. They referred to specific entries in the Policy and Customs Tariff Act for classification purposes. The court analyzed the term "industrial" in the context of machinery usage in industries, implying organized effort for product creation or material processing. While the literature did not classify staplers as industrial or non-industrial, the applicant demonstrated the staplers' use in packaging and paper holding, common in industries. The court acknowledged the thin line between industrial and non-industrial machinery, especially for items like stapling machines used in various settings. Considering the objective of the REP license and the usage of stapling machines in garment manufacturing, the court concluded that the industrial stapling machine referred to in the Policy is one used by the manufacturer in garment production. The decision favored the applicant, stating that the stapling machine imported was indeed an industrial stapling machine for garment manufacturing purposes. The court awarded costs to the applicant.
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