1989 (7) TMI 248 - AT - Customs

Summary

Issues:
Importation under Open General Licence (OGL) rejected due to Actual-User Condition.

Detailed Analysis:

Issue 1: Importation under OGL rejected due to Actual-User Condition
- The appellants imported a consignment of "Needle Sewing Machine with standard accessories" seeking clearance under Import Export Policy, 1985-88.
- The Additional Collector rejected their claim for importation under OGL, citing non-satisfaction of the Actual-User Condition.
- The appellants contended that as an Industrial Undertaking with an Industrial License for manufacturing automobile tires and tubes, they qualified as Actual Users under the policy.
- The dispute centered around whether the items fell under the category of "Machinery for manufacture of Garment/Hosiery/Made-ups" and could only be imported by manufacturers in that sector.
- The Tribunal analyzed the relevant policy provisions and concluded that only manufacturers of garment/hosiery/made-ups could be considered Actual Users for the items in question.
- The Tribunal emphasized the interrelation between different sections of the policy and the need for harmonious interpretation.
- The alternative plea by the appellants for clearance under an additional license was also rejected as it required the goods to be used by an Actual User, which the appellants were not considered to be.
- Consequently, the Tribunal upheld the decision of the Additional Collector, dismissing the appeal.

This detailed analysis highlights the key arguments, policy provisions, and the Tribunal's reasoning leading to the dismissal of the appeal based on the Actual-User Condition under the Import Export Policy, 1985-88.