1997 (10) TMI 162 - AT - Customs

Summary

Issues:
1. Interpretation of import regulations regarding Star Aniseed.
2. Application of actual user condition in import policy.
3. Compliance with import policy changes post-1992.
4. Justification of fine and penalty imposed.

Analysis:
1. The appeal involved a dispute over the import of Star Aniseed, previously categorized under Appendix 6, List 4 as a crude drug. The Collector of Customs imposed a fine and penalty for violating Customs Act provisions.

2. The Appellant argued that the authorities wrongly imposed an actual user condition absent in the import policy. They relied on clarifications allowing free import of crude drugs for stock and sale, citing past practices and legal precedents supporting their position.

3. The Respondent contended that Star Aniseed fell under restricted items for making ayurvedic and unani medicines, emphasizing the absence of representations for medicinal use. They distinguished cited case laws and asserted the inapplicability of past practices post-1992 policy changes.

4. The Judge analyzed the import policy post-1992, highlighting the requirement for crude drugs for medicinal purposes. Despite past practices, the current policy mandated specific use, as clarified by the CCI&E. The Judge dismissed the appeal, upholding the fine and penalty as proportionate to the value of goods.

5. The Judge differentiated the case from exemption notification issues, emphasizing the current import policy's relevance. Dismissing arguments based on past practices and legal precedents, the Judge upheld the fine and penalty, considering them reasonable. The judgment focused on the policy's updated requirements for importing Star Aniseed for medicinal purposes.