1989 (9) TMI 229 - AT - Customs

Summary

Issues:
- Interpretation of the Import Policy regarding the importation of loaded printed circuit boards under Open General Licence.
- Whether the confiscation of the goods and imposition of redemption fines were legal and justified.

Analysis:
1. The appellant contended that the importation of loaded printed circuit boards under Open General Licence was permissible under Serial No. 565(15) of Appendix 6 List 8 Part I of the Import Policy. The appellant, being an actual user, argued that the goods were imported in accordance with the law. The customs authorities, however, held that the boards fell under Serial No. 113 of Appendix 2 Part B, requiring a valid import license. The appellant maintained that the boards were not covered by Appendix 3 Part A, making their importation under OGL lawful.

2. The respondent argued that the boards were covered by Serial No. 113 of Appendix 2, making them ineligible for import under OGL. They contended that items in Appendices 2 to 5 were not allowed for import under OGL. The respondent also highlighted that populated printed circuit boards were specifically included in Appendix 2-B, precluding their import under OGL. Additionally, they relied on Para 21(c) of the Policy, stating that specific descriptions in Appendix 2-B would prevail over generic descriptions in other appendices.

3. The Tribunal analyzed the conflicting interpretations and noted that the exclusion of loaded printed circuit boards from Serial No. 565(15) of Appendix 6 List 8 Part I would render the provision meaningless. The Tribunal emphasized that populated printed circuit boards were not explicitly excluded from the scope of Serial No. 565(15) by Appendix 2. The Tribunal rejected the respondent's argument that Appendix 2-B items prevail over entries in Appendix 6 List 8 Part I.

4. Referring to Para 21(f) of the Import Policy, the Tribunal clarified that items not covered by Appendix 3 Part A could be legally imported under OGL under Serial No. 565(15) of Appendix 6 List 8 Part I. The Tribunal emphasized that the importation of the printed circuit boards, not covered by Appendix 3 Part A, was specifically allowed under Serial No. 565(15). The Tribunal concluded that the importation by the appellant under OGL was lawful and valid.

5. The Tribunal held that the confiscation of the goods was not justified based on the interpretation of the Import Policy. Consequently, the appeals were accepted, and the appellants were granted consequential reliefs.