1988 (12) TMI 278 - AT - Customs

Summary

Issues:
1. Validity of the license for import of digital multimeters.
2. Interpretation of Appendix I Part B Serial No. 10(140) and Serial No. 10(60).
3. Confiscation of goods under Section 111(d) of the Customs Act, 1962.

Validity of the license for import of digital multimeters:
The appellant imported digital multimeters described as Electronic Circuit Testers (Multimeters) against an additional license. The Department contended that the license was not valid for the import as the goods did not fall under the specified categories in the license. The appellant argued that the goods were covered by Serial No. 10(140) of Appendix I Part B, which was specific to electronic circuit testers. The Tribunal examined the description under Serial No. 10(140) and concluded that the term "Electronic Circuit Tester" is an inclusive entry that encompasses multimeters. The Tribunal applied the principle that the word "includes" in interpretation clauses enlarges the meaning of words or phrases, leading to a broad interpretation. Consequently, the Tribunal held that the license was valid for the imported goods, and the Collector's order of confiscation was set aside.

Interpretation of Appendix I Part B Serial No. 10(140) and Serial No. 10(60):
The Department argued that the description under Serial No. 10(140) of Appendix I Part B was specific to equipment for electronic milk analyzers and did not cover the general purpose Electronic Circuit Tester imported by the appellant. The Tribunal disagreed, emphasizing that the term "Electronic Circuit Tester" was explicitly mentioned in the inclusive description of the entry. The Tribunal cited legal precedents to support its interpretation that inclusive terms should be broadly construed. As a result, the Tribunal concluded that the imported goods fell within the scope of Serial No. 10(140) and did not need to address the alternative entry of Serial No. 10(60). The appeal was allowed based on this interpretation.

Confiscation of goods under Section 111(d) of the Customs Act, 1962:
The Collector of Customs had ordered the confiscation of the imported digital multimeters under Section 111(d) of the Customs Act, 1962, offering the appellant the option to redeem the goods on payment of a fine. The Tribunal, upon finding that the goods were validly imported under the relevant license, set aside the Collector's order of confiscation. The Tribunal held that since the goods were covered by the license, there was no basis for confiscation under Section 111(d). Consequently, the appeal was allowed, and the impugned order was overturned.