1988 (11) TMI 237 - AT - Customs

Summary

Issues:
- Appeal against the order of the Collector of Customs regarding the import of lard under OGL Appendix 10(1) and entry 41 of Appendix 8 of Import and Export Policy, 1982-83.

Detailed Analysis:

1. Background and Claimed Relief:
- The appeal was filed by the department against the Collector's order regarding the import of lard under OGL Appendix 10(1) and entry 41 of Appendix 8 of Import and Export Policy, 1982-83. The department sought to set aside the Collector's order and determine the correct legal position on the issue.

2. Facts of the Case:
- The respondents imported lard and claimed clearance under OGL Appendix 10(1) against an export house additional license. The department alleged that lard falls under entry 41 of Appendix 8, which canalizes tallow of any animal origin, including mutton tallow.

3. Arguments by the Department:
- The department argued that the Collector ignored a clarification from the Chief Controller of Import & Export (CCIE) stating that lard falls under the description of tallow of any animal origin. The department contended that the Collector's failure to consider this clarification rendered his order legally flawed.

4. Arguments by the Respondents:
- The respondents argued that the Collector correctly distinguished between tallow and lard based on technical and commercial differences. They cited legal judgments emphasizing the importance of commercial parlance and the final authority of the Collector in interpreting the law.

5. Judgment and Analysis:
- The Tribunal focused on whether the Collector was justified in disregarding the CCIE's clarification on lard. The Tribunal noted that the clarification, received before adjudication, was not marked secret and should have been considered by the Collector. Citing legal precedents, the Tribunal held that the Collector's failure to consider the clarification was a legal error.

6. Decision and Conclusion:
- The Tribunal concluded that the Collector's order was legally flawed and set it aside. However, since the goods were already released and no penalty was deemed justifiable, the case was not remanded to the Collector. The appeal was disposed of by setting aside the Collector's order without further action due to the circumstances of the case.

This detailed analysis outlines the key arguments presented by both parties, the legal basis for the decision, and the ultimate conclusion reached by the Tribunal in setting aside the Collector's order regarding the import of lard under specific provisions of the Import and Export Policy.