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TMI Blog1987 (9) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. imported one package containing Cumbria Kit, Peripheral Seal Kit and Valve Gland Kit and sought clearance under OGL under App. 10(4) of the Import Policy AM 79 as spare parts of machinery. The customs after examination objected to the clearance on the ground that the goods imported are not spares and, therefore, not permissible to import under OGL. The Asstt. Collector of Customs who adjudged the confiscation after affording personal hearing ordered confiscation but allowed redemption on payment of fine of Rs. 12,000/-. 3. Feeling aggrieved by the order, the appellants herein preferred an appeal before the Collector (Appeals) unsuccessfully. Hence this appeal. 4. During the hearing of this appeal Shri Gandhi vehemently urged that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Actual Users (Industrial) in the matter of raw materials, components, consumables and spares (other than those for computer systems) will be met through the system of (i) Open General Licences, (ii) automatic and supplementary Licensing set down in this Chapter, and (iii) allotment through canalising agencies as provided in Chapter 10". Shri Gandhi urged that if one reads between lines it will be clear that the policy intended to permit import of goods like the goods imported by the appellants and as such, the authorities below are unjustified in ordering confiscation and imposing fine in lieu of confiscation. It was also urged by Shri Gandhi during the adjudication proceedings, licence was also produced but then the adjudicating authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then referred to conditions (1) and (2) governing the import under OGL. Shri Pal particularly referred to conditions (1) and (2) and condition (2) was specific that consumables cannot be imported under OGL. Shri Pal, therefore, submitted that there is no merit in the appeal and the same may be rejected. 6. In reply, Shri Gandhi submitted that though the appellants have used the expression consumables in their appeal, it was used in a loose sense and not in the sense that expression was defined in the policy. Shri Gandhi submitted that the goods imported do not participate or is required in the manufacturing process and it does not form part of the end product and, therefore, it cannot be treated as consumables within the meaning of tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spares which are permitted to be imported by Atual Users both Industrial and Non-Industrial. As per the said para they will be permitted to import under OGL permissible spares, i.e. all those parts required as spares, other than the items appearing in the banned list or the restricted list and which are required by them for maintenance of all capital goods including accessories, ancillary equipment s, control and laboratory equipment s and safety appliances, installed or in use by them as on 1.4.1978. This Chapter 9 also provides for grant of licence for import of spares even non-permissible spares. The elucidation of the policy is given in Chapter 9 of the Hand Book. Para 204(1) allows import of a part as a component, spare or an accessor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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