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Issues:
Challenge against the order of confiscation and redemption of consignment of Chilled Cast Iron Rolls based on import policy interpretation and clearance objections. Analysis: The appeal was filed against the Collector of Customs' order confiscating a consignment of Chilled Cast Iron Rolls valued at Rs. 1,80,952 but allowing redemption on payment of a fine of Rs. 90,000. The dispute arose from the clearance claimed under Appendix 10 Item 4 of AM 1982-83 Policy as permissible spare, which the department objected to, citing import during the 1983-84 Policy period and specific licensing requirements under Appendix 3. The appellants argued that they satisfied the conditions under Para 7 of Appendix 10 of AM 1982-83 Policy, allowing shipment up to 31-3-1984 for contracts entered before 28-2-1983. The documents presented indicated early order confirmations and the opening of the Letter of Credit on 14-6-1983. The appellants contended that they met the Appendix 10 conditions, justifying the import. The learned Advocate for the appellants highlighted the timeline of order confirmations and the delay in opening the Letter of Credit due to bank processes. The Central Bank of India confirmed the application for the Letter of Credit in February 1983, aligning with the Appendix 10 conditions. The Tribunal noted the early order confirmations, registration with the bank, and acknowledgment of the delivery schedule by the bank, satisfying the conditions of Para 7 of Appendix 10. The Tribunal rejected the argument that the latest order confirmation lacked a delivery schedule, emphasizing that it was obtained to ensure terms of sale consistency for opening the Letter of Credit. The Tribunal found the appellants to be actual users eligible for the license, and since the conditions of Appendix 10 were met, the import should have been allowed despite occurring in the 1983-84 Policy period based on a firm contract registered before 28-2-1983. In conclusion, the Tribunal allowed the appeal, granting consequential relief to the appellants. The decision was based on the satisfaction of the conditions outlined in Appendix 10 of the AM 1982-83 Policy, despite the import occurring during the 1983-84 Policy period. The Tribunal emphasized the importance of adherence to the specified conditions for import clearance and upheld the appellants' argument regarding the timing of the contract registration and order confirmations in justifying the import of the Chilled Cast Iron Rolls.
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