1995 (5) TMI 127 - AT - Customs

Summary

Issues: Interpretation of REP licence provisions and eligibility for import under different provisions.

Analysis:
The appeal was against an Order-in-Original by the Collector of Customs, Air Cargo Complex, Bombay, regarding the clearance of consignments of Flip-Off Seals against two REP licences. The issue was whether the appellants were eligible to import the goods under the licences issued. The Adjudicating Authority held that the REP licence only permitted import of packing material for exported products and ordered confiscation of the goods. The appellants argued that the endorsement of Para 204 on the licence allowed them to import the goods, and the provisions of Appx. 17 did not restrict this. They also cited previous decisions supporting their stance. The Respondent contended that REP licences were governed by Para 7 of Appx. 17 and the provisions of Para 204 were not satisfied. The Tribunal noted that the licence was issued to an Export House/Trading House with the appellants as supporting manufacturers and had an endorsement of Para 204. It concluded that the appellants were eligible to import the Flip-Off Seals under the licences produced, setting aside the confiscation order.

The Tribunal highlighted that the eligibility for import under the REP licence had to be considered from different angles, and the provisions of Para 204 were not subject to or controlled by Appx. 17. It noted the distinction between Manufacturer Exporters and Merchant Exporters/Trading Houses under the policy. The conditions for eligibility under the licences were found to have been complied with, and the imported item, Flip-Off Seals, was considered a packing material. The Tribunal emphasized that the specific entry covering the item in question under Appx. 3A was not identified, and the objection raised by the Adjudicating Authority was not upheld. The Tribunal also referenced previous decisions supporting the appellants' interpretation of the REP licence provisions and concluded that the appellants were eligible to import the goods under the licences, allowing the appeal with consequential relief.