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TMI Blog1991 (3) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... ether, on the facts and in the circumstances of the case each type and size of mechanical seal imported by the applicant should be considered to be a different item and its import allowed accordingly if the value of each such item was within the limit of Rs. 50,000/- as laid down in para 54B(iii) of the relevant Import Policy of 1978-79? 3. Whether, on the facts and by reason of the definition of "spares" appearing in the Import Policy, each mechanical seal imported by the applicant is to be treated as a separate item of spare and the limit of the value of Rs. 50,000/- as laid down in para 54B(iii) of the relevant Import Policy should be applicable on each such seal? 4. Whether, on the fact and in the circumstances of the case, two int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring afforded to the applicant, an Order-in-Adjudication was made confiscating the goods under Section 111(d)/111(m) of the Act and imposing a fine of Rs. 20,000/- in lieu of such confiscation to be paid within a month from the date thereof. The aforesaid order of adjudication was confirmed in appeal. A revision filed before the Govt. of India against the Order in appeal, was transferred to the Tribunal and heard as if it were an appeal pursuant to the provisions contained in Section 131B(2) of the Act. 4. It was contended before the Tribunal that: (a) The applicant was an actual user. The goods imported were required for use in a pump in the explosive manufacturing unit and the seals are tailor made and are not indigenously available. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... short question which calls for determination is whether on a correct interpretation of para 54B(iii) of the Import Policy of 1978-79, each type and size of mechanical seal imported by the applicant should be treated to be a single item for the purpose of the said paragraph. Before us the contentions urged before the Tribunal have been reiterated. 7. To appreciate the contentions, it is necessary to extract the relevant provisions of the Import Policy. Para 54, which deals with Import Policy for spares, reads as follows: "54BB. (i) They may apply for a licence for import of other (non-permissible) spares at the rate of one per cent of the c.i.f. value of all the imported plant, machinery and equipment and of ½ per cent of the purchase p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Description Selling price to Purchaser price per Amount £ 1. Case contg: Non-Permissible spares Spares for Acid Pump Seal Fluoseal Mechanical Crane Packings Ltd.'s Item 1 20 Nos. Type 10-3/4"size (T10 QWIC- QIV) 0190/10/V/649 Mat Code : 21- 690-330 £87.34 1746.80 Item 2 20 Nos. Type 10-7/8"-Pt. Number 0222/0010/ U/649 Mat Code: 21-690-340 93.28 1865.60 Item 3 10 Nos. Type 10-1" size (T10/QWICQ IV) 0254/10/V/640 Mat Code : 21-690- 650 01.83 1018.30 Item 4 20 Nos. Type 18-1.1/8" size (T10/ QWICQ IV) 0 85/10/V/59) Mat Code : 21-690-355 109.60 2192.00 Item 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reated as different spares and if such construction is accepted the provision of sub-para (iii) will be defeated. He has also submitted that when there is a violation, the importer has to be penalised irrespective of the nature of the violation. The conduct of the assessee may be a factor in determining the quantum of penalty or fine, but it has nothing to do with the question of imposition of penalty or fine. 12. There is no dispute that the value of the applicant's licence was Rs. 1,81,675/-and the value of the imported goods was Rs. 1,49,980/-. It is not also in dispute that the crane mechanical seals imported by the applicant were of different sizes and one could not replace the other. Para 54B(iii) allowed importation of "single non- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt were of various sizes and specifications and could be used only in the sizes and specifications on the said pumps corresponding to the sizes and specifications of the mechanical seals. Each mechanical seal is precision tailor-made and being of a particular size and specification can be used only in corresponding size and specification on said pump. These are to be treated as a single and separate item for the purposes of para 54B(ii) of the relevant Import Policy of 1978-79. 14. It is no doubt true that there is no equity about a tax but in case of a reasonable doubt the construction most beneficial to the subject is to be adopted. If there are two interpretations possible, then effect is to be given to the one that favours the citizen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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