1986 (12) TMI 231 - AT - Customs

Summary

Issues:
1. Interpretation of import restrictions under Para 30(1) of Import Policy A.M. 78.
2. Validity of REP licenses for import of stamping foils by manufacturer-exporters.
3. Classification of stamping foils as export-linked import items.
4. Application of Annexure II restrictions on import items against export products.
5. Compliance with specific endorsement requirements for importing restricted items.

Analysis:
1. The case involved the interpretation of import restrictions under Para 30(1) of Import Policy A.M. 78. The appellants, engaged in manufacturing plastic bangles, imported stamping foils against their REP licenses. The Customs did not allow clearance citing import restrictions under Para 30(1) and Annexure II of the policy.

2. The validity of the REP licenses for importing stamping foils was questioned as the items did not appear in the list of items eligible for import against the export products specified in the licenses. The licenses were issued under Para 30(1) which required adherence to the export-linked import list specified in Annexure II.

3. The classification of stamping foils as export-linked import items was crucial in determining the validity of the licenses. The appellants argued that stamping foils were not export-linked items for plastic bangles and, therefore, should not be subject to the import restrictions specified in Annexure II.

4. The application of Annexure II restrictions on import items against specific export products was a key point of contention. The appellants contended that since stamping foils were not directly linked to their export products, the restrictions should not apply. However, the Collector argued that stamping foils fell under the generic terms of "trimmings and embellishments" listed in Annexure II.

5. Compliance with the specific endorsement requirements for importing restricted items was also raised. The appellants failed to obtain specific endorsements on their licenses for importing stamping foils, as required by Sub-para 2 of Para 30. This failure to comply with endorsement procedures further weakened their case.

In conclusion, the Tribunal upheld the decision of the lower authorities, ruling against the appellants. The judgment emphasized the strict adherence to import restrictions under Para 30(1) and Annexure II, highlighting the importance of specific endorsements for importing restricted items. The classification of stamping foils as export-linked items and the applicability of generic terms in Annexure II were key factors in the decision, leading to the rejection of the appeals.