9911796707
TMI Blog1998 (9) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... not liable for confiscation under Section 113(b) of the Customs Act. 2. Facts of the case are that the respondents entered into a contract with the Russian purchasers for the supply of distribution panels under a contract dated 26-1-1990. For executing their contract they were granted an advance. They exported 9 distribution panels. For the last consignment when the respondents filed a shipping bill dated 26-8-1991, Examining Officer objected to this as it was not a distribution panel. Show cause notice dated 14-2-1991 was issued for confiscation of goods under Sections 113(d) and (i) of the Customs Act and why penal action cannot be taken under Section 112(1) of the said Act. Notice was also given for taking action to levy duty on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exported goods would be distribution panel with 15 number miniature circuit brakers K-32N. When there is no input or output wires the goods could not be treated as distribution panels. She also read Para 221(1) of Policy which contemplated that licence may be issued under the scheme only if or in addition the conversion of raw materials into the resultant intermediary product must involve substantial manufacturing activities. She also invited our attention to the statement given by Tushar Vora of the Aptek Electronics an associate of the respondent to show that distribution panels supplied by them to the respondent did not have only outlet provided on all four sides on the box placing insulation paper/bakelite. The conversion of raw materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and put in series. The writing would be done in the buyers premises and only thereafter the exact positioning of the MCBs would be known, and windows cut for operation of these switches. As regards the lack of holes on the box for the input and output cables it was claimed that this could be done only by the users at the site because the positioning of the boxes would be known only at the site. It was urged that putting holes on all four sides would be entirely counter productive. On the defence plea above the Collector has held as follows :- The plea made by the defence is acceptable. There would indeed be no purpose in not treating the impugned goods as distribution panels merely because some holes which are better drilled later a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was no input wires nor any internal wiring. It is stated by the defence as extracted above that the wiring could be done in the buyers premises. There was no holes done if there are no holes then how could wiring could be done. How there can be input output if wires there. Without this an input out how can any circuit be made. Nor from gigantic electrical operation unless, a positive negative circuit is generated in machine cannot work more so an electrical circuit breaker. Therefore the action of having said to be exported certain items which are incomplete itself does not merit export. 6. It was argued by the ld. Counsel Shri M.V. Doiphode that the decision of Deccan Industries Products P. Ltd. v. C.C.E., Hyderabad - 1996 (81) E.L.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 when there is a range capacity of 25. Therefore, probability of MCB encounter maximum designated ampare range was virtually not existed. Collector on the basis of the agreement of Assistant Collector with the electrical background came to the conclusion that the goods could be passed. 8. In this connection reference may be made to Para 221 of the Policy it has been specifically stated as follows :- 221(1) Licences may be issued under this scheme only if (i) the Registered exporters hold valid export orders in their own names; and (ii) are able to realise foreign exchange in their own names for the products proposed to be exported. In addition, the conversion of raw materials etc. into the resultant intermediate product must involve s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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