2000 (5) TMI 317 - AT - Central Excise

Summary

Issues:
1. Interpretation of import policy regarding fax machines under different licensing authorities.

Analysis:
The judgment dealt with the importation of fax machines by multiple appellants under specific import licenses. The licenses contained endorsements permitting the import of 'data communication, transmitting and receiving equipment.' However, the Customs Department disputed the validity of these licenses for importing fax machines, citing policy restrictions. The dispute centered around whether fax machines were eligible for import under the import policies in force.

The advocate for the appellants argued that the licenses should be valid for importing fax machines as they were considered non-OGL capital goods under specific policy provisions. He referred to past instances and a Tribunal decision supporting this view. On the other hand, the departmental representative contended that policy amendments restricted the import of fax machines under the relevant provisions, regardless of their classification as capital goods.

The judgment referenced the Bombay High Court's decision and concluded that the import of fax machines should be allowed under the licenses. It emphasized that the licenses permitted the import of data communication equipment, which encompassed fax machines. The court rejected the departmental representative's arguments and upheld the appellants' contentions regarding the validity of the endorsements for importing fax machines.

Additionally, the judgment analyzed the policy provisions related to office machines and capital goods. It highlighted that the policies did not explicitly define office machines but specified conditions for their import by registered exporters. The court found that the licensing authority had considered fax machines as non-OGL capital goods based on issued licenses, permitting their import. Therefore, the court held that the endorsements on the licenses were valid for importing fax machines, ultimately ruling in favor of the appellants and overturning the previous order of confiscation.

In conclusion, the judgment clarified the interpretation of import policies concerning fax machines, emphasizing the validity of endorsements on licenses for importing such goods. It provided a detailed analysis of the policy provisions, past decisions, and the licensing authority's considerations to support its ruling in favor of the appellants.