9911796707
TMI Blog1959 (7) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... a licence authorising him to import parts of machinery when required for industries and undertakings other than cinema and refrigeration, covered by serial No. 65/(5)(iii) of Part V of the Import Trade Control Policy Book for the period July/December, 1955. The licence was valid up to 31st May 1957 from the date of issue. Under this licence the respondent imported a certain number of pieces of "inner races, outer races and cage" which admittedly are parts of ball bearings. The Collector of Customs, Madras held that these articles did not fall under Serial No. 65(5)(iii) of Part V but fell under Serial No. 19(l)(viii) of Part II of the Import Trade Control Policy Book, apparently relating to the period July/December, 1956, and that therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Import Trade Control Policy Book for the period July/December, 1955. This ground was accepted by the learned Judge, Balakrishna Ayyar, J. who found that the goods imported by the respondent were covered by the licence issued to him. He allowed the application filed by the respondent. Hence this appeal by the Collector of Customs, Madras. 2. Though interesting and elaborate arguments were addressed to us both by the learned Advocate General for the Collector of Customs, Madras and Mr. V. C. Gopalarathnam for the respondent-importer, the matter lies in a very narrow compass. The only question which falls for decision is whether the articles imported fall within serial number 65(5)(iii) of Part V of the Import Trade Control Policy or whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mponent parts of ball bearings, and if these articles were imported under a licence granted when the Import Trade Control Policy Book for the licensing period July/December, 1956 was in force, then the articles would certainly fall within Serial No. 19(1)(viii) of Part II. The only question in this case is whether the imported articles fall within the category of ball bearings or within the category of "component parts of machinery when required for industries and undertakings other than cinema and refrigeration". Serial No. 65(5) opens with the following words : "Component parts, as defined in item No. 72(3) of the First Schedule to the Indian Tariff Act, 1934, of machinery specified in clauses (1), (2), (3) and (4) above, but excluding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other purpose. Here there is no proof that the article imported satisfy that condition. Whether in a particular case ball bearings themselves might or might not form such component parts, the imported articles which are only parts of ball bearings cannot be deemed to be component parts of machinery mentioned in Item Nos. 72(1) and 72(2) of the First Schedule to the Indian Customs Tariff. So his argument ran. But the Proviso contemplates that even articles which did not satisfy this condition would also be deemed to be component parts of the machine to which they belong if they are essential to their operation. No doubt it is left to the Collector of Customs to determine whether the quantities imported are reasonable. In the present cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neral Licence No. XXIII component parts of ball, roller and taper bearings are shown as falling under Serial No. 65(5) of Part V. This also lends support to the contention on behalf of the respondent. In the impugned order the Collector says : "The importers have entered into commitment in respect of the present consignment after the announcement of the I.T.C. policy for July/December 1956 in which a separate sub S. No. was provided for component parts of ball bearings and in the absence of which, so far as the earlier periods like July/December 1955 were concerned, the components were classifiable under the serial number for the items of which they were the components. The classification of ball bearings was thus made abundantly clear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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