2000 (5) TMI 197 - AT - Customs

Summary

Issues:
1. Whether Fax machines could be imported under Additional Licences during Import Policy period 1988-1991.

Analysis:
The issue before the Appellate Tribunal was whether Fax machines could be imported under Additional Licences during the Import Policy period of 1988-1991. The South Regional Bench had initially opined that the Additional Licences used were not valid for Fax machine imports due to undeleted conditions, despite a contrary view by the East Regional Bench in a previous case. The appellant's counsel argued that the Import Policy provisions did not require the deletion of licence conditions, emphasizing that the Custom House's role was to verify if the goods matched the licence description. The Departmental Representative contended that the import policy restrictions applied, citing a Supreme Court decision.

The Tribunal examined the specific licence (No. 3311353) for M/s. Sevak Ayat Niryat Co. Pvt. Ltd., noting the description and conditions on the licence. It referred to relevant sections of the Import Policy, highlighting the distinction between REP Licences for Registered Exporters and Additional Licences for Export/Trading Houses. The Policy differentiated between permissible items under these licences, clarifying restrictions on capital goods and office machines for each category of importer.

Further analysis revealed that the Policy allowed Fax machine imports under specific conditions for Export/Trading Houses, without restrictions on office machines. The Tribunal emphasized the differences in import permissions under REP Licences and Additional Licences, underscoring the absence of restrictions on office machines under the latter. It rejected the Department's interpretation that office machines were not permitted under Additional Licences.

The Tribunal found that the conditions on the licences were satisfied, and Fax machines were permissible under the Import Policy's provisions for Additional Licences. It disregarded the Department's reliance on a communication barring Fax machine imports, emphasizing the necessity of statutory backing for such instructions. The Tribunal concluded that the Fax machine imports were lawful under the licences issued, overturning the confiscation and penalties imposed.

In summary, the Tribunal's decision favored the appellants, allowing the appeals and providing consequential relief based on the interpretation of the Import Policy provisions and the specific conditions on the licences issued during the relevant period.