1996 (6) TMI 262 - AT - Customs

Summary

Issues:
1. Interpretation of import policy regarding Remote Switches for air conditioner and wire harness.
2. Confiscation of goods under Section 111(d) of the Act.
3. Appeal against the order of the adjudicating authority.
4. Classification of the imported items under the import policy.
5. Assessment of redemption fine imposed.

Analysis:
The case involved the appellants importing a consignment of Remote Switches for air conditioner and wire harness under the Open General Licence (OGL) provisions. The issue arose when the authorities objected to the clearance, stating that the switches imported were specific components of Air Conditioners and fell under a different entry of the Import and Export Policy Book. The adjudicating authority ordered confiscation of the goods under Section 111(d) of the Act, with an option to pay a fine. The appellants appealed this decision before the Collector of Customs (Appeals), Bombay, where the order was confirmed.

During the appeal, the appellant's advocate argued that the switches imported fell under the OGL provisions, referencing a previous decision and highlighting the functions of the imported item as being similar to switches. On the other hand, the respondent's representative contended that the imported item was a specific component of car air conditioners and not just a switch, falling under a different entry of the policy book.

After considering the submissions and examining the imported item, it was established that the item was a "Remote Switch Unit" designed specifically for car air conditioner units. The tribunal noted that the item's functions went beyond that of a simple switch, aligning more with the components listed under a specific entry of the policy book. The tribunal concluded that the objection raised was well-founded, and no interference was warranted.

Regarding the wire harness, the tribunal found no evidence to refute the classification under a specific entry of the policy book. As for the redemption fine imposed, the tribunal reduced the fine showing leniency towards the actual users of the goods.

In conclusion, the tribunal confirmed the order with modifications to the redemption fine, emphasizing the importance of correctly interpreting the import policy for specific components and components of air conditioning and refrigeration equipment.