9911796707
TMI Blog1990 (5) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... defective spares and parts free of charge in lieu of replaced parts for the period of the contract. 1.2 A special type of compressor of the above Ion-Implanter machine became defective and needed replacement. The supplier in terms of the above contract despatched a replacement 'compressor cryo 208'. The compressor was supplied on charge basis and the value for custom purposes only was indicated as such in the invoice. The Appellants filed a bill of entry dated 8-7-88 for the clearance of the above compressor claiming OGL No. 4/88-91 in respect of Import Trade Control. 1.3 However, on examination of the consignment by the Customs it was found that the supplier had also included some other parts of the above machine besides the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed, except for payment of insurance and freight charges where the replacement of goods by the foreign suppliers is subject to the payment of insurance and/or freight by the importer and documentary evidence to this effect is produced at the time of making the remittance; (c) the following documents shall be produced to the satisfaction of the Customs authorities, at the time of clearance of the replacement goods :- (i) Original letter from the foreign supplier as evidence of goods being supplied free of cost, in the case of free replacements; (ii) a survey certificate issue by the Lloyds Agents or any other authorised insurance surveyors or in the case of machine or parts thereof, a certificate from a professional independent Charter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity, therefore, has inferred that the parts have been paid in advance and it cannot be said that they have been supplied free of charge. Accordingly, the goods have been confiscated under Section 111(d) with an option to the appellants to redeem them on a fine of Rs. 1,75,000/-. A personal penalty of Rs. 2,500/- has also been imposed on the appellants. 2. Learned Consultant Shri K.K. Chopra for the appellants has urged that the provisions of OGL 4/88-91 squarely applies to the facts of this case inasmuch as the goods have been supplied free of charge. The adjudicating authority, according to him, has erred by taking into account the service contract. He also urges that the impugned order is self contradictory because the compressor h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority in denying the benefit of the said OGL is correct. No doubt, the parts are covered under warranty and the invoice also shows that the parts have been supplied free of charge, it cannot be said that it is actually so in the face of the service contract. Service contract to the tune of US $ 22,600 covers parts and labour. It is, therefore, reasonable to infer that the parts under consideration here have been paid in advance and the conditions of OGL-4, item (6) thereof are not strictly complied with. The goods are, therefore, liable to confiscation under Section 111(d) of the Customs Act. 5. At the final stage, however, the learned consultant pointed out that the importers were not informed about the confiscation of the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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