2000 (6) TMI 72 - AT - Customs

Summary

Issues involved:
Classification of imported electronic diaries under Customs Tariff Act, importability against specific or special import licence, interpretation of ITC (HS) Classification, authority of DGFT in import clarification.

Analysis:
1. The appeal questioned the classification of imported electronic diaries by M/s. Casio India Co. Ltd. under Sub-heading 8471.10 or 8470.10 of the Customs Tariff Act and whether they can be imported against a freely transferable special import licence or a specific import licence.

2. The Deputy Commissioner classified the diaries under 8470.10, confiscated them, and imposed fines, stating they are consumer goods requiring a specific import licence. The Commissioner (Appeals) upheld this decision, emphasizing the inability to write programs on the diaries and the need for classification under the Customs Tariff Act.

3. The Appellant argued that the ITC (HS) Classification permits importation against a special import licence, citing clarifications from DGFT and the transparency provided by the Export & Import Policy aligned with ITC (HS) Classification.

4. Referring to the Export & Import Policy, the Appellant highlighted the DGFT's final authority in import clarification, citing previous instances and public notices supporting the import of electronic diaries under a special import licence.

5. The opposing view contended that the electronic diaries do not fall under Heading 84.71 but under 84.70 of the Customs Tariff Act, requiring a specific import licence. The DGFT's clarifications were interpreted as restricting import without a specific licence.

6. The Appellant defended the DGFT's clarification, stating it was sought specifically for the imported goods, emphasizing the relevance of the model of the electronic diaries in question.

7. The Tribunal considered the facts, including the Appellants' request for clarification from DGFT and the binding nature of such clarifications as per the Export & Import Policy. Citing precedents, the Tribunal noted the specific mention of electronic diaries in the ITC (HS) Classification and upheld the appeal, setting aside the confiscation order.

In conclusion, the Tribunal ruled in favor of the Appellants, allowing the appeal and setting aside the confiscation order, as the electronic diaries were found to be importable against a special import licence based on the ITC (HS) Classification and DGFT's clarifications, which are binding on Customs Authorities.