1994 (3) TMI 229 - AT - Customs

Summary

Issues Involved:
The judgment involves the interpretation of import regulations under the Customs Act, specifically regarding the classification of imported Thrust Ball Bearings and their eligibility for clearance under Open General License (OGL).

Summary:
The appellants imported Thrust Ball Bearings claiming them to be for specific use in cinema projectors, seeking clearance under OGL. The authorities objected based on policy entries, leading to confiscation order under Section 111(d) of the Customs Act. The appellants argued that the imported items fell within permissible categories, distinct from ordinary Ball Bearings, and should be considered under OGL.

The Advocate for the appellants contended that the Thrust Ball Bearings were custom-made and should be permissible under OGL, referencing relevant policy entries. The Respondent argued that the imported items did not qualify as permissible Ball Bearings under the specified entries, justifying the confiscation order.

Upon examination, it was confirmed that the imported items were indeed Thrust Bearings, falling within specific internal bore diameters. Policy entries differentiated between Ball Bearings and Thrust Ball Bearings, with specific criteria for permissible imports under OGL.

The judgment clarified that the imported Thrust Ball Bearings did not meet the criteria for clearance under OGL, as they were classified under specific entries not covered by the policy. Consequently, the confiscation order under Section 111(d) of the Customs Act was upheld, with a reduced fine imposed considering the appellants' usage and profit motives.

In conclusion, the judgment affirmed the confiscation order while reducing the fine amount, emphasizing the adherence to policy provisions and the specific classification of imported Thrust Ball Bearings under the Customs Act.