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Issues Involved:
1. Interpretation of the term "Marble" in the Import and Export Policy. 2. Commercial vs. Technical definition of "Marble." 3. Validity of ISI specification in defining "Marble." 4. Classification of calcareous stones under Customs Tariff. 5. Quantum of redemption fine and penalty. Summary: Issue 1: Interpretation of "Marble" The primary issue is whether the term "Marble" appearing against Sr.No. 62 in Appendix 2 Part-B of the Import and Export Policy AM. 88-91 should be interpreted in its true and technical sense, adopting geological and petrological definitions. The Tribunal held that the term "Marble" in the Import Policy should not be restricted to its technical meaning but should be understood in its commercial parlance. It was concluded that the term "Marble" is not confined to metamorphosed crystalline products but includes any hard calcareous stone that is homogenous and fine-grained, often crystalline, and either opaque or translucent. Issue 2: Commercial vs. Technical Definition The appellants argued that the term "Marble" should be given a technical meaning, emphasizing geological or petrological definitions. However, the Tribunal rejected this argument, stating that the Customs Tariff and Import Policy should be interpreted in commercial parlance. The Tribunal noted that the Explanatory Notes, although not legally binding, indicate that marble is often crystalline but not necessarily always so. Therefore, the term "Marble" includes a broader range of calcareous stones that can take polish and are commercially known as marble. Issue 3: Validity of ISI Specification The appellants contended that the ISI specification should be the sole criterion for defining "Marble" in commercial parlance. The Tribunal disagreed, stating that the ISI specification is intended for quality standards and not for determining the general commercial understanding of the term. The Tribunal emphasized that the ISI definition is not exhaustive and that the commercial definition of marble is broader, including sedimentary carbonate rocks that can be polished and used as marble. Issue 4: Classification of Calcareous Stones The Tribunal held that calcareous stones with a specific gravity of 2.5 and above fall within the family of marble, travertine, ecaussine, and other calcareous monumental or building stones as per Customs Tariff Heading 25.15. The Tribunal concluded that the imported calcareous stones, although not technically marble, are commercially known as marble and thus fall under the restricted category in the Import Policy. Issue 5: Quantum of Redemption Fine and Penalty The Tribunal noted that while the appellants took some precautions to ensure that the imported goods were permissible under OGL, they failed to obtain an authentic clarification from the Chief Controller of Imports & Exports. Considering the appellants' bona fide belief and the technical nature of the goods, the Tribunal reduced the penalty from Rs. 10,00,000/- to Rs. 5,00,000/- but otherwise upheld the Collector's order. Conclusion: The appeal was dismissed, confirming the Collector's order with a reduction in the penalty amount. The Tribunal emphasized the importance of commercial parlance in interpreting the term "Marble" and rejected the narrow technical definition proposed by the appellants.
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