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Issues:
Import of tools under OGL, classification of goods as spares or tools, justification of fine amount, interpretation of Policy regarding import of tools. Analysis: The appeal concerned the import of tools by M/s. Mangalore Chemicals & Fertilizers Ltd. under OGL, which was objected to by Customs. The Additional Collector ordered confiscation but allowed redemption on payment of a fine of Rs. 50,000. The appellant argued that the imported goods should be considered as spares or accessories under the Policy, emphasizing that they had a valid license for non-permissible spares. The Customs contended that the goods were tools, not spares, as per the invoice description. They argued that tools were covered under the Policy and distinguished from spares functionally. The Member analyzed the definitions of spares and accessories under the Policy. He noted that the goods imported were described as tools in the invoice, including wrenches, sockets, handle extension bar, and sledge hammer. The Member observed that tools could not replace parts or assemblies, as required for classification as spares. He also found it difficult to accept that tools could be considered accessories under the Policy. Regarding the import of tools, the Member clarified that the Policy did provide for the import of tools under OGL and against licenses, with a list of banned items in Appendix 3 that included tools. Since the imported goods were not spares, the Additional Collector was justified in not accepting the license for non-permissible spares and in ordering confiscation. The Member reduced the fine from Rs. 50,000 to Rs. 25,000 considering the circumstances and the nature of the goods imported. In conclusion, the appeal was rejected, and the fine amount was modified. The Member upheld the decision of the Additional Collector regarding the classification of the goods as tools, the justification for the fine amount, and the interpretation of the Policy concerning the import of tools.
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