1988 (7) TMI 225 - AT - Customs

Summary

Issues:
- Challenge to ITC Classification of Transistors by Additional Collector Customs
- Interpretation of Import Policy regarding Collector to Emitter Voltage of Transistors
- Applicability of OGL for imported Transistors
- Confiscation of goods under Customs Act
- Imposition of fine and penalty under Customs Act

Analysis:
The appellant challenged the ITC Classification of Transistors by the Additional Collector Customs, who observed that the imported Transistors did not fall under the Open General License (OGL) as their Vceo was only 100 volts, not above 100 volts as required. The Additional Collector confiscated the goods under Section 111 (d) and 111 (m) of the Customs Act, imposing a fine of Rs. 25,000 and a personal penalty of Rs. 500 on the appellants. The appellant argued that the Import Policy allowed the import of Transistors above 100 volts under OGL, citing discrepancies in the Collector to Emitter voltage specifications between the invoice and the catalogue.

The appellant contended that the Collector to Emitter voltage of the imported Transistors was above 100 volts, as indicated in the invoice and catalogue. They argued that the Import Policy did not specify whether the parameter should be Vceo or Vces, and expert opinion from the Department of Electronics supported their claim. The appellant emphasized that there was no misdeclaration on their part and sought the benefit of doubt, referencing previous legal decisions supporting this stance.

Upon review, the Tribunal found that the Import Policy did not specify whether Vceo or Vces should be considered for the Collector to Emitter voltage of Transistors. The Tribunal noted that the catalogue provided by the appellants showed maximum ratings of Vces 200 volts and Vceo 100 volts, indicating ambiguity in the parameter to be considered. Given this ambiguity and the presence of two parameters, the Tribunal ruled in favor of the appellants, setting aside the order of confiscation and redemption fine, and allowing the appeal.

In conclusion, the Tribunal's decision centered on the ambiguity in the Import Policy regarding the parameter to be considered for the Collector to Emitter voltage of Transistors. The benefit of doubt was given to the appellants due to the lack of clarity in the policy, leading to the reversal of the confiscation order and the fine imposed by the Additional Collector Customs.