9911796707
TMI Blog1988 (6) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... under 'Medicaments used in Ayurvedic Systems'. The throat drops, therefore, have medicinal properties and are not sweets or confectionery. 2. The petitioners wanted to import a High Speed Automatic Wrapping Machine for wrapping these throat drops. Under Import/Export Policy for April 1985 to March 1988 capital goods which may be imported by eligible actual users under Open General Licence subject to conditions applicable thereto, are listed in Appendix I Part B. Item 18(18) of Part B of Appendix I permits import by an actual user under open general licence of "High Speed Automatic Wrappes - other than for safety Razor Blades, cigarettes and Twist Wrappers for confectionery - of maximum operating speeds above 120/minute." 3. Under Appen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the machine was required for medicated products they felt that they could import this machinery under OGL 5. The Joint Chief Controller of Imports and Exports by his letter dated 12.7.1985 addressed to the petitioner replied by clarifying that the machine would be covered under entry 18(18) of Appendix 1 Part B. The petitioners thereupon imported such machine, which was imported under Airway Bill dated 23.2.1986. The petitioners filed the Bill of Entry on 5.3.1986 showing the goods imported under OGL. The petitioners however were served with a show cause notice dated 14.4.1986 to the effect that the import was illegal since the machine was designed for twist wrapping of sweetmeats and was excluded under entry 18(18) Appendix 1 Part B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition. It further says that the Actual User shall also ensure that their imports under OGL are strictly in accordance with their phased manufacturing programmes and the conditions of their industrial licences/registrations with the sponsoring authorities concerned. Therefore, the entries under Appendix 1 Part B are set out with reference to such end use. Entry 18(18) describes three exceptions to end uses of such machine viz. (i) for wrapping safety razor blades, (ii) for wrapping cigarettes and (iii) twist wrapping for confectionery. This has reference to the end use to which the machine will be put by the actual user. Therefore, if the machine is used for twist wrapping of medicinal preparations, such machine is not covered by the excepti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion cannot be challenged by the Customs authority. In fact in the Hand Book of Import-Export Procedures 1985-88, in paragraph 124, it has been stated : "As in the matters relating to import-export policy and procedure, the interpretation given by the Chief Controller of Imports Exports is final in case of doubt regarding these matters, the customs authorities should consult the Import Trade Control authorities before clearance of the goods". 11. In the case of Lokash Chemical Works v. M.S. Mehta, Collector of Customs (Preventive) reported in 1981 E.L.T. 235 (Bom.) a learned Single Judge of this Court observed that interpretation of licensing policy was the function of the licensing authority. It was not for the Customs authorities to in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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