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TMI Blog1995 (1) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... licy while the department s contention is that the items are consumer goods falling under Sl. No. 121 of Appendix 2B of the Policy requiring valid licence. 2. The Adjudicating authority held that the items were finished goods required merely to be inserted inside the tap for use and are available in any sanitary shop, therefore, satisfying human needs directly and hence falling within the ambit of Appendix 2B, Sl. No. 121. He therefore, confiscated the goods in the absence of licence to cover the same with an option of redemption on payment of a fine of Rs. 1 lakh and also imposed a personal penalty of Rs. 10,000/- on the appellants herein. 3. The lower Appellate Authority has confirmed the finding of the Deputy Collector of Customs hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r satisfying human needs and for that reason, are not consumer goods covered by Sl. No. 146 of Appendix 2-B of the Import Policy 1990-93. He therefore, prays for setting aside the order of the Collector of Customs (Appeals). 5. Opposing the prayer, Shri R.K. Kapoor, learned SDR contends that the items do not fall under Appendix 6, Sl. No. 1 but are consumer goods hit by falling under Sl. No. 121 of Appendix 2B and hence cannot be imported without a licence. He further submits that the items fall under Sl. No. 517 of Appendix 3 Part A which covers hardware and pipe fittings and therefore, hit by the Exclusion in Appendix 6. In addition, he reiterated the findings of the lower authorities. 6. We have considered the submissions of both the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of consumer goods, namely, that consumer goods are only those which can directly satisfy human needs without further processing. It was held therein that cooling coils fitted with extrusion valves imported by the appellants are sub-assemblies which by themselves constitute only a part of the air-conditioners used in automobiles, cannot be used directly without undergoing further processing and assembly alongwith other components for specifying human needs, and hence are not consumer goods covered by Sl. No. 146 of Appendix 2, Part B of the 1990-93 Import Policy. Following the same reasoning, we hold that the imported goods in question are not consumer goods falling under Sl. No. 121 of Appendix 2, Part B of the 1985-88 Import Policy. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported under OGL by reference to Sl. No. 1 of the Appendix to the Policy. Even though this point has not been raised by the lower authorities, since its ramifications are of immense magnitude, we propose to deal with the same. 10. The paramount legislation dealing with imports and exports is contained in Imports and Exports (Control) Act, 1947. Section 3(3) of the Act reads as under :- 3. Powers to prohibit or restrict imports and exports - (3) Notwithstanding anything contained in the aforesaid Act, the Central Government, may by order published in the Official Gazette, prohibit, restrict or impose conditions on the clearance, whether for home consumption or for shipment abroad of any goods or class of goods imported into India." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mport and Export Policy 1985-88 (Vol. I) can be imported by Actual users (Industrial) subject to `actual user condition and export houses/trading houses against REP/Additional Licences as per policy for sale to eligible Actual Users (Indus-trial) subject to `actual user condition. (29) Items covered under Appendix 6, List 8, Part III of the Import and Export Policy, 1985-88 (Vol. I) can be imported under Open General Licence by Actual Users (Industrial) and others for stock and sale." A perusal of the above decision shows that there is no stipulation contained anywhere in it that, apart from satisfying the condition that the raw materials/components do not appear in Appendix 2, 3, 5 and 8, it should also separately appear in Appendix ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other Serial Nos. of Appendix 6, against Sl. No. 1, it has been provided that raw materials, components and consumables as per list 8 alone are permitted for import under OGL. List 8, Part 2 of Appendix 6 inter alia permits imports by export houses/trading houses against REP/Additional licence for sale to actual user (industrial). List 8 Part 3 inter alia mentions items for import for stock and sale. Thus these lists of Part 2 and 3 inter alia cover imports by those other than actual users also while Sl. No. 1 of Appendix 6 permits imports only by actual user (industrial). This itself goes to show that the various parts of List 8 are independent, separate and additional lists of OGL items specifically mentioned in the Policy, in addition to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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