9911796707
TMI Blog1984 (9) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the matter can be disposed of without any affidavit as the point involved in this application is purely a question of law. Mr. Ali has, submitted that the respondents, however, do not admit the correctness of the allegations made in the petition save as would appear from the records. 3. The facts which are appearing from the records and the petition are stated hereinafter. The petitioner, M/s. Orissa Oil Industry Limited, Calcutta had imported on 19th March, 1984 two double pumps (hydraulic equipment) and one hydraulic motor by air from West Germany. The hydraulic double pump was described as a component of a hydraulic excavator engine. By a letter dated 9th April, 1984, the petitioner-company clarified that the double pump is a h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shipped on 16th March, 1984 and the importation falls within the extended period of validity of the licence. In other words, the items which are not covered by the said split up licence during 1983-84 Policy would not be allowed to be imported. The Collector of Customs held that the items in question are not covered by the licence and are, therefore, liable to confiscation. But in lieu of confiscation an option was given to the petitioner-company to pay a fine and get the goods released. Mr. Goutam Mitra, learned Advocate appearing for the petitioner submitted that the goods in question are covered by serial No. 411 of Appendix 5 of 1983-84 Policy period. Mr. Amjad Ali on the other hand has contended that the Collector of Customs in his or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oys). Serial No. 411 of the said list is in the following terms:-- Hydraulic equipment (like pumps, motors, cylinders, valves, accumulators and power units) and components thereof. But Appendix 5 excludes the items appearing in Appendix 26 and contains the list of automatic permissible items import of which would not be allowed to export houses against the additional licence. Item No. 65 of Appendix 26 is in the following terms:-- Items covered by Appendix 30 not separately appearing in this appendix. 7. It, therefore, follows that the items which are appearing in Appendix 30 would not be allowed to be imported by the export house against the additional licence. Appendix 30 contains the list of spares to be treated as non-pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if it becomes faulty or worn out, and includes, an accessory (or attachment) in the same regard. 8. Thus distinction has been made in the policy itself between component and spares . It is no doubt true that pumps of all types are included in Appendix 30 but they are included as spares. They are to be treated as non-permissible items when imported as spares. Spares as defined by the policy itself means a part or a sub-assembly or an assembly for substitution, i.e., ready to replace an identical similar part or a worn out part and includes an accessory (or attachment) in the same regard. But a component is one which is required for the purpose of manufacture of an end-product. Appendix 5 permits the import of components. When an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of excavators at our works. Above materials will not be disposed off as it is in the market in any manner. 2) We are registered with the D.G.T.D., New Delhi, and are holding Ind. Licence No. L/II/N-II/59 dated 17th August, 1959. A photo copy of the same is enclosed herewith and we certify that the same has neither been cancelled nor withdrawn or otherwise made inoperative. Per Pro Hindustan Motors Limited Sd. (A.G. Dhargaya) Vice-President (H.D.D). 9. It has not been disputed that the items which have been imported are required as components for the manufacture of excavators by Hindustan Motors Ltd. It is not a case of replacement of an identical similar part or sub-assembly. It is a case where the pumps are required for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is clear from the policy itself that the same item can have different uses depending on the purpose of the actual user. In this case it is not disputed that the pumps would not be used as spares by Hindustan Motors Ltd., but as components for the manufacture of excavators. In the premises, the contentions of the respondents that pumps of all types are excluded from the purview of the additional licence in view of the provision of Appendix 26 read with Appendix 30 cannot be accepted. 11. It is well settled that if the interpretation of any fiscal enactment is open to doubt, the construction most beneficial to the subject should be adopted, even if it results in its obtaining an advantage. On a reasonable construction of the relevant provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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