9911796707
TMI Blog1988 (11) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... ic Tinning Line Machinery Spares and sought their clearance under the provisions of OGL Appendix 10, Item 4 of AM 82. The C.I.F. value of the four consignments was totally Rs. 34,48,668/-. On the basis of certain information that the goods may be a complete plant as against spares and that the goods have been supplied after two years since placement of order, the matter was investigated by the Special Investigation & Intelligence Branch of the Custom House. On examination of the consignments, they were found to be complete units of Electrolytic Tinning Line Machinery and they were found to be old and used and not even reconditioned. In the statement of the Director of the appellants' firm, he had admitted that these are used spares and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al is against the aforesaid order of the Addl. Collector. 4. Shri Deshpande, Advocate for the appellants contended that the goods imported are permissible spares as per OGL Appendix 10(4) of AM 82. Since they are not individual machinery items, production of Chartered Engineer's certificate for their import is not called for, since the plant was an old one built up in 1950 and they had to locate spares for the worn out parts of the plant which they had imported after locating such spares. He argued that the appellants had imported these spares which were only 10% of the value of the new plant. Nothing has been mentioned under Item (4) of Appendix 10 about prohibition in regard to the second hand spares. As regards the objection of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplete Electrolytic Tinning Line Machinery as such, the goods imported are definitely sections of the plant. He also produced the photograph of the goods imported showing that by their nature and size and their weight they cannot be construed as spare parts of a machinery. He also argued that the goods imported are machineries and hence if they are to be imported as second hand goods, they should be covered by specific licence and also Chartered Engineers' certificate and other documents. 6. We have considered the arguments on both the sides. It is not disputed that the items imported as covered by the photographs are the ones claimed to be spares. As seen from the records, it is observed that the plant has various equipments. They h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declared the goods to contain spares of Electrolytic Tinning Line Machinery. From the beginning, they were contending that these goods could be construed as spares as per the Policy, which became the subject-matter of dispute and also the cause in this appeal. In the circumstances, we feel that there is an area of doubt with regard to the allegation of deliberate mis-declaration attracting imposition of penalty and also confiscation under Sec. 111(m). Extending the benefit of doubt, we set aside the personal penalties imposed on the appellants on each Bill of Entry, while upholding the order of confiscation under Sec. 111(m) of the Customs Act read with Sec. 3(2) of the Imports & Exports (Control) Act, 1947. Penalties, if paid, shall be re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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