2000 (1) TMI 393 - AT - Customs

Summary

Issues Involved:
Classification of imported "Note & Document Counting Machine" under Customs Tariff Act - Sub-heading 8443.50 or 8472.90. Interpretation of Import Policy regarding the eligibility to import office machines under flexibility provisions.

Analysis:
1. The main issue in this appeal is the classification of the imported "Note & Document Counting Machine" by M/s. Bradma of India Ltd. The dispute revolves around whether the machine should be classified under sub-heading 8443.50 as "other printing machinery" or under sub-heading 8472.90 as an office machine. The Collector (Appeals) confirmed the classification under 8472.90.

2. The Appellant argued that they imported the machines under REP licenses and classified them as "other printing machinery." They contended that the machines were wrongly considered office machines by the authorities. The Advocate highlighted the ITC Policy and provisions regarding import replenishment under different policy periods to support their case.

3. In response, the Respondent referred to a previous case where a similar machine was not classified as printing machinery. They emphasized that the Import Policy prohibits the import of office machines under flexibility provisions, as stated in Para 118(7) of the 1988-91 Policy. The Respondent also defended the imposition of fines and penalties based on the value of the imported machines.

4. The Tribunal analyzed the submissions and upheld the classification of the machines under sub-heading 8472.90 as office machines, not printing machinery. They cited a previous case to support this classification. The Tribunal also clarified that Para 118(7) of the Import Policy clearly prohibits the import of office machines under flexibility provisions, which the Appellants had attempted to do.

5. Ultimately, the Tribunal agreed with the lower authorities that the import of the machines was not permissible under the REP licenses due to the specific provisions of the Import Policy. While reducing the redemption fine and penalty imposed, the Tribunal rejected the appeal, emphasizing the ineligibility of the Appellants to import office machines under the flexibility provisions.

This detailed analysis covers the classification dispute and the interpretation of the Import Policy, highlighting the reasons for the Tribunal's decision and the relevant legal provisions involved in the judgment.