1988 (6) TMI 228 - AT - Customs

Summary

Issues:
- Revision Applications against orders of Central Board of Excise and Customs
- Validity of import licence for Thiamine Mono-nitrate and Thiamine Hydrochloride
- Interpretation of AM-81 Policy regarding canalised items
- Confiscation of goods and imposition of redemption fine
- Differing views on Thiamine Mono-nitrate by Central Board of Excise and Customs
- Definition of Vitamin B-1 and its coverage under AM-80-81 Policy
- Quantum of redemption fine and scope for different interpretations

Analysis:

The judgment involves four Revision Applications challenging orders of the Central Board of Excise and Customs regarding the import of Thiamine Mono-nitrate and Thiamine Hydrochloride. The key issue revolves around the validity of the import licence for these items, considering their classification as canalised items under the AM-81 Policy. The appellants argue that the inclusion of Thiamine Mono-nitrate and Thiamine Hydrochloride under Vitamin B-1 in the Policy Book AM-81 does not require a separate licence. They rely on technical authorities to support their contention.

The Central Board of Excise and Customs has taken a strict stance, asserting that any salt or compound of Vitamin B-1 falls under the entry of Vitamin B-1 in the Policy, thereby necessitating a valid licence for import. The Board emphasizes the importance of adhering to the policy guidelines and canalisation of specific items. The differing views within the Board itself, particularly concerning Thiamine Mono-nitrate, add complexity to the interpretation of the Policy and its application in this case.

The judgment delves into the definition of Vitamin B-1 as per various technical sources, highlighting that Thiamine Mono-nitrate and Thiamine Hydrochloride are recognized forms of Vitamin B-1. The discussion also references previous orders and decisions, emphasizing the consistent treatment of these substances as Vitamin B-1 in trade and commerce. The Bench aligns with the earlier decision that both Thiamine Mono-nitrate and Thiamine Hydrochloride are covered by the term Vitamin B-1 under the Policy, justifying the requirement for a valid import licence.

Regarding the quantum of redemption fine, the Tribunal acknowledges the potential for differing interpretations and cites legal precedents to support its decision to reduce the fine to 25% of the C.I.F. value. The judgment underscores the complexity of the case and the genuine scope for varied viewpoints, ultimately granting relief to the appellants on this aspect while rejecting the appeals in other respects.