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TMI Blog1985 (2) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... ers had placed on their foreign suppliers Messrs Sugano Brothers an order for Snap Fasteners of the value of 5 per cent of the face value of their import licence under the Registered Exporters Policy Scheme (REP). Before that the Petitioners had already imported Zip Fasteners on the very same licence to the extent of 5 per cent of the value of the said licence. The respondent - Customs authorities disputed the right of the Petitioners to import a fresh consignment of Snap Fasteners on the ground that under the said note (3), the Snap and Zip Fasteners taken together which could be imported here no more than 5 per cent of the face value of the licence and therefore the present import of the Snap Fasteners which amounted to an additional 5 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he licence value (i.e. REP entitlement) upto which import of the concerned materials is allowed. The export products have been given alphabetical numbering e.g. A for Engineering Goods, etc. I am concerned in the present case with Products" viz. Readymade Garments, Hosiery and Knitwear. Some of these materials have General Notes in Column No. 5 which is meant for remarks. In some cases these General Notes also mention the figure of percentage of the licensed value upto which import of the material concerned is allowed. In the case with which I am concerned viz. that of Snap Fasteners and Zip Fasteners, there are General Notes at the beginning of O Products governing the percentage of Import entitlement. Hence there is no percentage of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Trimmings and Embellishments, import of each of the following items :- (i) Snap Fasteners and Zip Fasteners (including zips in coils and its components); and (ii) Pearls headed pins-stapling pins/industrial Stapling machines, shall not exceed 5% of the value of the licence subject to a maximum of Rs. 50,000/-. For other items, the import shall not exceed Rs. 1 lakh per item within the overall value of the licence." 6. The wording of the said Note shows that the import of each of the items mentioned under its Clauses (i) and (ii) is not to exceed 5% of the value of the licence subject to a maximum of Rs. 50,000/-. In the case of other items of trimmings and embellishments, the value is not exceed Rs. 1,00,000/- per item within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such as jointly or together after the two items would have sufficed to bring out the clear intent. Such words however have not been used. On the other hand, the Note clearly says that import of each of the following items (emphasis supplied) is not to exceed 5% of the value of the licence, and after saying so, follow the two items of Snap Fasteners and Zip Fasteners. The situation does not improve merely because the two items are mentioned in the same clause viz. Clause (i) of the Note. Clauses (i) and (ii) are not intended to serve as serial numbers of the items as they do in Column 4 of the Table. Clauses (i) and (ii) merely give the description of the items to which the Note applies. These clauses further show that the items belon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms were to be treated as one. 7. Shri Bhulchandani for the Respondents relied upon the fact that in the Joint Weekly Meeting held on 14.10.1983 it was decided, pending the decision of the Chief Controller of Imports and Exports, to treat the said items separately, and subsequently the Chief Controller of Imports and Exports clarified that the two items were to be read as one and the import of both the items together was not to exceed 5% of the value of the licence. According to him, the Chief Controller of Imports and Exports being the highest authority to make such a clarification under Paragraph 245 of the Imports Exports Policy of 1983-84, his clarification should be taken as final in the matter. 8. I am afraid this argument cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs to the extent of 5% of the value of the licence although they have already imported Zip Fasteners of the same value in the past. 9. The petition is therefore allowed and the rule is made absolute in terms of prayer (a). I am not inclined to award costs to the Petitioners because I am informed that the trade had always understood the said Note to mean that the import of items together was not to exceed 5% of the value of the import licence. It was only when a particular importer at Calcutta had tried to interpret it in the manner which is interpreted in this judgment and the Customs authorities there had allowed the import as per the said interpretation that the parties such as the petitioners started importing the two items individuall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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