1987 (5) TMI 191 - AT - Customs

Summary

Issues:
- Appeal against order confirming redemption fine under Section 125 of the Customs Act, 1962 for importing Sony Colour T.V. and Printed circuit board as trade samples.
- Interpretation of Appendix 7 of I.T.C. Policy 1985-88 regarding import of colour T.V. as a consumer item.
- Exclusion of consumer goods from Open General Licence under Appendix 2, Part-B, Serial No. 121 of the Policy.
- Argument on whether the imported colour T.V. qualifies as a trade sample under O.G.L. No. 4 of Appendix 7.

Analysis:
The judgment addresses an appeal challenging the redemption fine imposed on the appellant for importing a Sony Colour T.V. and Printed circuit board as trade samples under Section 125 of the Customs Act, 1962. The appellant contended that the import was permissible under Appendix 7 of the I.T.C. Policy 1985-88 as a bona fide technical and trade sample supplied free of charge not exceeding Rs. 20,000 in C.I.F. value. The appellant, being a recognized unit in research and development with an industrial license for manufacturing colour T.V. sets, argued that the import should be considered a trade sample and not consumer goods.

The Respondent, on the other hand, relied on Appendix 2, Part-B, Serial No. 121 of the Policy, which excludes consumer goods from the Open General Licence unless specifically listed. The Respondent highlighted that the imported goods were not listed under the O.G.L. in either Appendix 6 or Appendix 7. Additionally, the Respondent pointed out that Appendix 7, dealing with O.G.L. No. 4, stated that the license is subject to any other prohibition or regulation affecting the import at the time of importation.

Upon careful consideration, the Tribunal examined whether the imported colour T.V. qualified for import under O.G.L. No. 4 of Appendix 7. The Tribunal agreed with the Respondent that the imported colour T.V. was a consumer item, and Appendix 6 of the Policy explicitly prohibited the import of consumer goods under the Open General Licence. The Tribunal rejected the appellant's argument that the colour T.V. should be considered a trade sample, emphasizing that the item was not specifically listed, and the broad interpretation of 'trade sample' was not acceptable in the context of the Licensing Policy.

Consequently, the Tribunal affirmed the impugned order, dismissing the appeal and upholding the redemption fine imposed on the appellant for importing the Sony Colour T.V. and Printed circuit board, considering them as consumer goods not permissible under the Open General Licence.