1990 (4) TMI 148 - AT - Customs

Summary

Issues:
1. Classification of imported items as tools or machines under OGL.
2. Interpretation of Entry No. 549 (10) of List 8 of Appendix 6 of Policy AM 1985-88.
3. Challenge to the refusal of clearance based on the classification of items as machines.

Detailed Analysis:

1. The judgment involves multiple appeals with a common question regarding the classification of imported items as tools or machines under the Open General License (OGL). The appellants imported pneumatic tools and sought clearance under OGL. However, the clearance was objected to and refused on the grounds that the items were considered machines and not hand tools falling within the OGL category.

2. The appellants argued that the imported items were tools, not machines, and should be covered under Entry No. 549 (10) of List 8 of Appendix 6 of Policy AM 1985-88. They contended that pneumatic tools, despite their nature, should be considered tools and not machines for the purpose of import classification under OGL.

3. The Collector of Customs (Appeals) classified the items as pneumatically operated hand tools falling under Heading 8467.19 of the Customs Tariff Act, confirming that the items were tools and not machines. The Department did not challenge this classification, indicating acceptance of the items as tools. Despite this, the Collector of Customs (Appeals) initially classified the items as tools but later concluded them to be machines, a decision deemed unsustainable by the tribunal.

4. The tribunal held that since the items were classified as tools and not machines, the refusal of clearance on the basis of being machines was unjustified. The judgment emphasized that the imported items, operated on pneumatic force, were covered under Entry No. 549 (10) of List 8 of Appendix 6, making their import permissible under OGL without the need for a specific license.

5. Consequently, the tribunal allowed the appeals, set aside the previous orders refusing clearance, and permitted the import of the items under OGL. The judgment clarified that the imported items, being tools operated on pneumatic force, fell within the permissible category for import under the Open General License.