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Issues: Interpretation of the term 'related goods' under the REP licence for importation, interpretation of the word 'or' in paragraph 204(1) of the ITC policy, whether umbrella components can be imported under the REP licence not related to exported goods.
Analysis: 1. The appeal challenged an order confiscating umbrella fittings imported by M/s. Sunraj Exports under a REP licence. The Collector of Customs contended that the goods were not covered by the TRA produced for clearance, citing paragraph 204(1) of the ITC policy. The Collector interpreted the word 'or' in the paragraph as conjunctive, requiring the imported goods to be related to select products exported or manufactured by the licensee. 2. The appellant's counsel argued that the interpretation led to the dispute, asserting that goods imported under the REP licence need not be related to exported goods. Although the appellant did not export umbrellas but cut and polished diamonds, they used the umbrella fittings in another factory of the same manufacturer, which was not disputed by the department. 3. The department's counsel contended that imported goods must be relatable to exported goods under the REP licence to invigorate export performance. He emphasized that the purpose of the REP licence is to facilitate importation of materials for products to be exported. The counsel supported the Collector's interpretation of the word 'or' as conjunctive. 4. The Tribunal disagreed with the department, citing linguistic sources to establish that the word 'or' is a conjunctive, presenting alternatives. The Tribunal analyzed the language of paragraph 204(1) and concluded that the word 'or' allowed for importation of goods related to select products manufactured, even if not exported. 5. The Tribunal further analyzed the language of paragraph 204(1) to demonstrate that the word 'or' provided flexibility in importation, allowing for the use of components in factories related to the manufacturer, even if not the same factory from which goods were exported against the REP licence. The Tribunal emphasized the provision for cases where select products manufactured are not exported. 6. The Tribunal highlighted that the word 'or' in paragraph 204(1) did not restrict importation to only select products exported, but also included select products manufactured by the licensee. The Tribunal emphasized the permissible use of umbrella components in the factory of the same manufacturer under the REP licence. 7. The Tribunal considered a clarification issued to another entity by the Chief Controller of Exports and Imports, which supported the interpretation allowing the importation of goods not directly related to exported products. The Tribunal set aside the Collector's order, deeming the importation permissible under the REP licence. This detailed analysis of the judgment provides insights into the interpretation of the REP licence provisions and the significance of the term 'related goods' under the import policy.
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