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TMI Blog1985 (12) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... para 53 of the Policy AM-78. The Additional Collector of Customs, Bombay, held the enquiry. On behalf of the appellants it was contended before the Additional Collector that the imported materials were required for the use of the imported machinery in their own plant. They are to be used for wrapping round the header wherever the earlier wrappings would have worn out. They contended that the imported goods were spare parts within the meaning of para 54 of the Policy AM-78. They also contended that all that is required was to cut the lengths to the required length for use. The Additional Collector, however, did not accept this contention. He observed: it is not clear how this wrapping is simply going to stay without being given some shape and joining to the pipe. It is therefore clear that the sheet cannot be used by simply wrapping it around and would need specific shape to be given in order to keep one pipe properly wrapped. Apparently joining will also be inescapable. Therefore strictly speaking it cannot be covered under the description of permissible spares". In that view of the matter, the Additional Collector ordered confiscation but allowed redemption on payment of a fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the provisions of paras 52, 53 and 54 of the Policy AM-78. The observation of the Board that spare parts the import of which could be permitted should be identifiable spare parts ; is nowhere laid down in the Policy. He further urged that cutting of strips into small bits to suit the requirements could not amount to fabrication. Running length had been imported because it is not possible to know the required length and width of the strip without stopping the machine. Further, the fabrication should result in a different article, in any case the fabricated item will not have the same identity as the original article but in their case the original article does not loose its identity. The strips are only cut into bits according to the requirements and they are wrapped by suitably bending in the form of a clamp. He also submitted that the Board had recorded a finding that the bona fide of the importation was not in doubt. Having held so the Board ought to have set aside the entire fine. Shri Lachman Dev also urged that the licence was an actual users licence and in terms of the Policy they could have imported the goods in question and thereafter could have made use of for the requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n shape and joining to the pipe. He did not call upon the appellants to explain the process by which they make the strip to stay in the pipe or on the pipe. If the Additional Collector had any doubt as to the contention of the appellants that the only process required was cutting the strips into bits and bending them he should have either asked the appellants to demonstrate or obtain some expert opinion. Though the Board has recorded a finding that the licence was for permissible spare parts of machinery and that the goods imported were not identifiable spare parts, the Additional Collector did not hold that the goods were not covered by the licence. 6. The expression spare is not defined in the Policy AM-78, but in the Policies of the later years, we find the definitions of the expression spare as well as part . In the Policy AM-80 the expression spare is defined: Spare means a part or sub-assembly for substitution, i.e. ready to replace an identical/or similar part or sub-assembly, if it becomes faulty or worn out, and includes an accessory (or attachment) in the same regard . (See Chapter 2 para 5(11) ). Part means an element of a sub-assembly or assembly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re required to be fabricated for manufacturing spare parts will not be treated as spare parts . 10. The first question that arise for consideration is whether the goods imported are spare parts . Now according to paragraph 54 spare parts are those parts of machines which because of wear and tear use, or breakage, need replacement . The appellants contention all along has been that the sheets which they cut into bits are required as replacement as the inconel sheets fitted to the pipes in the Ammonia Reformer gets worn out and needs replacement. Their contention that sheets fitted to the pipes in the Ammonia Reformer gets worn out and needs replacement was not controverted. Similarly, their contention that sheets imported would be required for being fitted to the pipe as replacement also had not been challenged. Therefore, the sheets imported qualify as spare parts. It may be pointed out that according to paragraph 54 the spare parts may include materials, such as pipes, tubes, electric cables, wires, hoses and beltings imported in length which have merely to be cut to the required size or bent before being used . Shri Pal s contention was that the items mentioned in Clause ..... X X X X Extracts X X X X X X X X Extracts X X X X
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