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TMI Blog1987 (8) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... Engineering Traders, a small scale industry, Actual Users imported 3 consignments of Metal Cutting Tools Hob cutters and shapper cutters and sought clearance against automatic licence issued in the name of M/s Hindustan Steel and Metal Works, Bombay. The licence was valid for the import of items shown in Appendix 5 of AM 83 and was also issued in terms of Para 32(2) of AM 83 policy book. The respondents were engaged in the manufacture of redrawing of copper and brass tubes, copper tubes and coils. The Customs however objected to the clearance on the ground that the goods imported were not required by the licence holder for use in his factory. The goods imported are used for gear shafting and hobbing on specific type of gear shapper and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Deputy Collector may be confirmed. 6. Appearing for the Respondents Shri Pushkarna submitted that the licence produced for clearance of the goods was an automatic licence which was granted to Actual Users. The expression Actual User has been defined in the Policy as under: - Actual Users means a person who applied for/secures a licence for import of any item or an allotment of an imported item required for his own use and not for business or trade in it. Thus, in the case of an industrial undertaking the item concerned shall be utilised for the manufacturing processes or operations conducted within its authorised premises (or made available to jobbing units or other units outside for intermediate processing only as a part of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he machines required for efficient production. Therefore, the policy makers have permitted part of the production activity through jobbing units. Shri Pushkarna urged that the Deputy Collector was not correct in taking a view that the imported goods would not be required for use in their factory. Since the policy permitted getting certain work done through jobbing units, it cannot be said that there was any violation of the licence conditions or any other provisions of the policy. Finally, Shri Pushkarna urged that the Collector (Appeals) rightly relied on the decision of the CEGAT. Shri Pushkarna placed reliance on the following two decisions of the CEGAT. (1) 1986 (6) ECR 334 (CEGA-T) Bombay M/s Oriental Importers Exporters, Gwalior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n produced by the jobbing unit. Eventually the Collector ordered confiscation. 10. In the appeals filed by M/s Oriental Importers Exporters and M/s Amar Knitting Works Pvt. Ltd., the issue that arose for consideration before the West Regional Bench and Special Bench C was whether in a case where an actual user imports certain goods as raw materials and gets a product manufactured out of the said material on a job-work basis, by an outside agency, and uses the said manufactured product in his own premises in the further manufacture of the final finished product, they would be eligible to the benefit of OGL as per Serial No.1 of Appendix 10 of the A.M. 82 Import policy in respect of the raw material imported into the country. The West ..... X X X X Extracts X X X X X X X X Extracts X X X X
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