1994 (7) TMI 178 - AT - Customs

Summary

Issues:
1. Whether the import of poppy seeds can be allowed under Open General Licence (OGL) as a crude drug.
2. Whether the appellants had a bona fide belief that the goods were permissible for import under OGL.
3. Whether the import in contravention of the condition incorporated in the Import Policy is a contravention of law.

Analysis:

Issue 1:
The Tribunal referred to a previous case where it was held that poppy seeds do not qualify as crude drugs under OGL and are considered consumer goods. The Tribunal concluded that poppy seeds are not eligible for clearance under OGL Appendix 6 List 8 Part III as they fall under a different category. The Tribunal also distinguished a case regarding the classification of machinery to support its decision.

Issue 2:
The appellants claimed a bona fide belief that the goods were permissible for import under OGL. However, the Tribunal found no merit in this argument as the appellants had previously imported a similar consignment that was confiscated, indicating awareness of the restrictions. The Tribunal dismissed the argument of long-standing practice based on unrelated bills of entry and upheld the confiscation.

Issue 3:
The appellants argued that importing goods against Import Policy conditions is not a contravention of law as the policy is administrative. The Tribunal disagreed, citing legal provisions that make such imports illegal. It differentiated between statutory orders and administrative notices, emphasizing that violating Import Policy conditions can lead to confiscation under relevant laws. The Tribunal rejected the appellants' reliance on previous court decisions to support their argument.

In conclusion, the Tribunal upheld the confiscation and penalty imposed on the appellants, finding no grounds to overturn the decision based on the issues raised during the appeal.