1992 (9) TMI 223 - AT - Customs

Summary

Issues:
1. Import of Poppy Seeds under R.E.P. licence.
2. Classification of Poppy Seeds as consumer goods.
3. Nexus requirement between imported items and export product under R.E.P. licence.

Analysis:
1. The appeal concerns the import of 8 MT of Poppy Seeds under a R.E.P. licence, contested due to the seeds being considered consumer goods of agricultural origin, not permissible for import under the relevant policy. The appellants argued that the licence authorized seed imports, citing the Customs Tariff Act's classification of Poppy Seeds under seeds category, supported by a previous decision. The Adjudicating Authority and Collector upheld the objection.

2. The appellants contended that Poppy Seeds, classified as seeds in the Tariff Act, were permissible for import under the licence, contrary to the argument that they were consumer goods. The JDR supported the objection, citing policy provisions requiring nexus between imported items and export products under R.E.P. licences. The Tribunal noted the Tariff Act's classification and upheld the appellants' argument, referencing previous judgments.

3. The Tribunal considered the nexus requirement between imported items and export products under R.E.P. licences. While acknowledging the JDR's argument for nexus, the Tribunal relied on a Bombay High Court decision that such a nexus was not mandatory, leading to the decision to set aside the objection and order of the lower authorities. The Tribunal emphasized that since Poppy Seeds were classified as seeds and no nexus requirement existed, the objection and order against the appellants could not be upheld, ultimately allowing the appeal.