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Issues Involved:
1. Whether chilled cast iron is different from cast iron and other iron. 2. Whether the chilled cast iron rolls imported by the appellants are covered in Appendix 3, Sl. No. 2 as iron and steel items. 3. Whether they are covered by Appendix 10(4) and alternatively by Entry No. 2 of Appendix 10. 4. Whether the redemption fine of Rs. 20,000.00 imposed on the appellants is necessary in the circumstances of these cases. Detailed Analysis: Issue 1: Whether chilled cast iron is different from cast iron and other iron. The appellants contended that chilled cast iron is a specific form of white iron, produced by rapid cooling, and is distinct from other types of cast iron. They cited the "Metals Handbook, Ninth Edition, Volume I" by the American Society for Metals, which describes chilled iron as a type of white iron with specific characteristics. The Tribunal noted that chilled iron is indeed a type of white iron, distinguished by its fine grain and directionality, but it is still a form of cast iron. The Tribunal concluded that chilled cast iron is not completely different from cast iron, rejecting the appellants' argument. Issue 2: Whether the chilled cast iron rolls imported by the appellants are covered in Appendix 3, Sl. No. 2 as iron and steel items. The Tribunal examined whether the imported chilled cast iron rolls fell under Appendix 3, Sl. No. 446, which lists "cast iron and cast steel rolls (finished weight per roll up to 30 tonnes) for industrial use." The Tribunal found that Appendix 3 does not specifically mention spares and that the caption of Appendix 3 excludes iron and steel and ferro-alloys from its scope. The Tribunal noted that the appellants had declared the items as spares for flour mill machinery, which was accepted by the Customs. Therefore, the Tribunal concluded that the items were not covered by Appendix 3, Sl. No. 446. Issue 3: Whether they are covered by Appendix 10(4) and alternatively by Entry No. 2 of Appendix 10. The Tribunal analyzed whether the imported items could be cleared under Open General Licence (OGL) as per Appendix 10. Appendix 10(4) allows the import of permissible spares not included in Appendices 3, 4, 15, and 30. The Tribunal found that the chilled cast iron rolls were not listed in these appendices and thus were permissible spares under Appendix 10(4). The Tribunal also considered the alternative argument that the items could be covered by Appendix 10(2), which allows the import of iron and steel items not included in Appendices 4, 6, 7, and 8. The Tribunal concluded that the importation was covered by Appendix 10(4) and was not hit by Appendix 3, Sl. No. 446. Issue 4: Whether the redemption fine of Rs. 20,000.00 imposed on the appellants is necessary in the circumstances of these cases. Given the Tribunal's findings on the previous issues, the imposition of the redemption fine became moot. The Tribunal set aside the orders of the lower authorities, concluding that the importation was permissible under the relevant policy and that the spares should be returned to the appellants. Conclusion: The Tribunal concluded that chilled cast iron is a type of cast iron and not completely different. The imported chilled cast iron rolls were not covered by Appendix 3, Sl. No. 446, and were permissible spares under Appendix 10(4). Consequently, the orders of the lower authorities were set aside, and the appeals were accepted, with the spares ordered to be returned to the appellants.
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