2000 (11) TMI 556 - AT - Customs

Summary

Issues:
- Interpretation of Open General Licence (OGL) provisions for import of quartz table clocks
- Classification of imported goods as consumer goods
- Application of Import Policy paragraph 156
- Consideration of public notice for import of components
- Determination of further processing requirement for imported parts
- Impact of semi knocked down/completely knocked down condition on import classification

Interpretation of OGL provisions for import of quartz table clocks:
The appeal considered whether the import of quartz table clocks could be allowed under the Open General Licence (OGL) or if it fell under prohibited consumer goods. The Commissioner invoked Import Policy paragraph 156, which restricted the import of consumer goods without a license or public notice.

Classification of imported goods as consumer goods:
The appellant argued that the imported parts were component parts assembled into clocks through complex operations, not directly satisfying human needs. However, the judgment noted that the parts needed further processing to become consumer products, thus not meeting the definition of consumer goods in the Policy.

Application of Import Policy paragraph 156:
The Entry No. 1 under paragraph 156 posed a challenge as it referred to goods in semi knocked down/completely knocked down condition or ready to assemble sets. Accepting the appellant's arguments would undermine this provision, leading to the import of consumer goods in completely knocked down condition, contrary to the policy's intent.

Consideration of public notice for import of components:
The appellant cited a public notice permitting the import of components subject to actual user condition. However, the judgment clarified that assembly of semi knocked down/completely knocked down components into finished products by actual users was not covered under this notice.

Determination of further processing requirement for imported parts:
The judgment emphasized that parts of the clocks required further processing to satisfy human needs, making them ineligible as consumer goods. The assembly of these parts into clocks constituted the necessary processing for consumer use.

Impact of semi knocked down/completely knocked down condition on import classification:
The judgment confirmed that the import of goods was prohibited due to the requirement for further processing. Despite the lack of clarity in the Policy's expression, the penalty on the importer was set aside, considering the appellant's status as an actual user, and the redemption fine was reduced.