2000 (1) TMI 386 - AT - Customs

Summary

Issues:
1. Interpretation of Import and Export Policy regarding the classification of Black Cumin as a consumer good or a crude drug.

Analysis:
The case involved an appeal by an importer who had imported Black Cumin as a crude drug for Ayurvedic medicines but faced clearance issues due to the authorities not allowing it under the Open General License (OGL). The appellate authority remanded the matter for reconsideration under the Export-Import Policy, which led to the Customs authorities eventually allowing the claim and clearing the consignment. However, the Department appealed the decision, and the Commissioner of Customs (Appeals) set aside the lower authority's order without imposing any monetary liability on the importer. The main issue raised was whether Black Cumin should be classified as consumer goods or a crude drug.

The Government of India had published Import and Export Policies that listed Black Cumin as a crude drug under OGL during various periods. The Import and Export Policy from April 1990 to March 1993 and earlier policies consistently categorized Black Cumin as a crude drug for Ayurvedic medicines. In contrast, the Export and Import Policy from April 1992 to March 1997 excluded drugs from consumer goods. Therefore, based on the historical classification and policy provisions, Black Cumin was deemed a crude drug and not consumer goods. The appellate authority's decision to consider Black Cumin as consumer goods was deemed improper, and the adjudicating authority's classification under OGL was upheld. Consequently, the Commissioner (Appeals) decision was deemed illegal and set aside, restoring the original order and allowing the importer's appeal.

In conclusion, the judgment clarified the classification of Black Cumin as a crude drug based on the Import and Export Policy provisions, overturning the Commissioner (Appeals) decision that deemed it consumer goods. The case highlighted the importance of accurate interpretation of policy guidelines in determining the classification of imported goods under OGL, ensuring consistency and compliance with regulatory frameworks.