1989 (11) TMI 179 - AT - Customs

Summary

Issues:
1. Interpretation of Import Policy for 1983-84 regarding raw materials.
2. Interpretation of Open General Licence for 1985-88 for dry fruits.
3. Validity of REP licence for importing dry fruits.
4. Whether dry fruits can be considered as consumer goods.
5. Whether a reference to the High Court under Section 130 of the Customs Act is warranted.

Analysis:

Issue 1:
The applicants sought reference to the High Court under Section 130 of the Customs Act based on the interpretation of the Import Policy for 1983-84. They questioned whether their REP Import Licence covered raw materials like dry fruits. The Tribunal initially dismissed their Reference Application due to a delay in filing, but the High Court later allowed it, directing a hearing on the merits.

Issue 2:
The crux of the matter was whether dry fruits could be imported under the Open General Licence for 1985-88 as raw materials by an Actual User. The applicants argued that the items were essential for their end products, chutney burfi, and chaura. However, the Tribunal concluded that the imported goods were consumer goods and not eligible for import under the REP licence.

Issue 3:
The main contention revolved around the validity of the REP licence issued under the 1983-84 Import Policy for importing hard shell almonds, dry figs, and raisins as raw materials. The Additional Collector had initially denied clearance, leading to an appeal that was rejected by the Tribunal, upholding the confiscation order.

Issue 4:
A significant debate arose on whether dry fruits should be classified as consumer goods or raw materials. The Tribunal determined that the imported items were consumer goods, which the applicants used as raw materials for their manufacturing process. The distinction between banned consumer goods and permissible raw materials was crucial in this context.

Issue 5:
The applicants sought a reference to the High Court under Section 130 of the Customs Act, arguing a lack of clarity in the legal provisions and the need for a definitive interpretation. However, the Tribunal rejected this request, citing the Supreme Court's judgment on a similar matter involving the import of dry fruits under different licensing schemes.

In summary, the judgment delved into the intricate details of import policies, licensing requirements, and the classification of goods as consumer items or raw materials. The Tribunal's decision hinged on the interpretation of relevant legal provisions and the nature of the imported goods, ultimately leading to the rejection of the applicants' plea for a reference to the High Court.