1996 (5) TMI 203 - AT - Customs

Summary

Issues: Importation of populated printed circuit boards, interpretation of relevant policy entries, adequacy of import license, classification of goods, quantum of fine, applicability of Notification No. 232/83.

In this case, the appellants imported populated printed circuit boards against an additional license valid for specific goods falling under Appendices of the AM, 1984 Policy. The lower authority confiscated the goods, stating they were not covered by the import license and were prohibited under specific entries in the policy. The Collector (Appeals) upheld the decision, leading to this appeal.

The appellant argued that the imported goods were permissible sub-assemblies and not covered by the entries mentioned by the authorities. They claimed that the license they possessed was adequate for the importation. On the other hand, the Revenue argued that the goods had been transformed into populated boards, no longer falling under the category of plain printed circuit boards. They contended that the license did not cover goods under Appendix 3A and was not transferable.

The Tribunal analyzed the entries in the policy and noted that the imported goods were indeed populated printed circuit boards, not plain ones. The specific description under a particular entry in Appendix 2B prevailed over general entries in Appendix 3A, making the importation of the goods prohibited at that time. The Tribunal concluded that the license was insufficient for the importation of these goods, justifying the confiscation.

Regarding the quantum of fine, the Tribunal acknowledged that the importers were actual manufacturers, not sellers, and had evidence to support this claim. Therefore, the fine was reduced from Rs. 90,000 to Rs. 40,000. The Tribunal also ruled out the applicability of Notification No. 232/83, as populated circuit boards were excluded from the tariff item covered by the notification.

In conclusion, the Tribunal rejected the appeal, except for reducing the fine amount. The decision highlighted the importance of specific descriptions in policy entries, adequacy of import licenses, and the exclusion of certain goods from tariff item coverage under relevant notifications.