1994 (2) TMI 148 - AT - Customs

Summary

Issues:
1. Classification of goods under Import Policy.
2. Eligibility for clearance under OGL Appendix 6 List 8 Part III.
3. Interpretation of relevant appendices for import eligibility.

Analysis:
1. The appeal concerned the confiscation of a consignment of Khaskhas under Sl. No. 5 of Appendix 5B of the Import Policy, which classified it as a canalised item. The appellants argued that Khaskhas were not oil seeds as they could not be planted for crop growth or oil extraction. They claimed to be industrial users for manufacturing medicines, citing supporting letters and previous orders allowing import under OGL for stock and sale.

2. The appellants sought clearance under OGL Appendix 6 List 8 Part III for stock and sale. However, the Respondent pointed out that the item did not qualify under the note appended to Appendix 6 List 8 Part III, which limited entries to items covered under OGL for actual industrial users. The Respondent argued that poppy seeds could not be imported under OGL due to their classification in Appendix 2 Part B.

3. The Tribunal agreed with the appellants that Khaskhas were not covered by Item 5 of Appendix 5B and were permissible for import by industrial users. However, the Tribunal deliberated on whether the import could be allowed as a crude drug under OGL or for stock and sale under Appendix 6 List 8 Part III. It was determined that the specific mention of poppy seeds in Appendix 2 Part B precluded their import under OGL or for stock and sale, as per the principles outlined in Chapter 22 of the Policy.

4. Consequently, the Tribunal held that the items were not eligible for clearance under OGL or Appendix 6 List 8 Part III due to their classification in Appendix 2 Part B. The order of confiscation was upheld, but considering the circumstances and absence of penalties, a fine of Rs. 50,000 was imposed. The appeal was rejected, affirming the decision based on the interpretation of relevant appendices and import eligibility criteria.