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TMI Blog1986 (4) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... licy and since REP licences were issued to enable the exporters to import replenishment materials required for the frozen shrimps processed and exported by the appellants, the import of prime galvanised steel sheets in coils was found to be not relevant to the product exported. It is in these circumstances proceedings were instituted against the appellants by the Collector of Customs, Madras by issue of a show cause notice under the Act which ultimately culminated in the present impugned order now appealed against. Shri Habibulla Badsha, the learned counsel for the appellants submitted that the appellants have a main factory at Palavakkam at Madras-41 for processing frozen prawns, frog legs, lobster tails and cuttle fish and have a branch factory at Alandur, Madras-16 for manufacturing of corrugated sheets. It was urged that the import of 92.680 M.Ts. of prime galvanised sheets by the appellants against three licences issued under Appendix 17 of the Import Policy referred to above was for manufacturing corrugated sheets in the appellants' branch factory. The learned counsel contended that in terms of para 138( 1) of Import and Export Policy for AM 1984-85 REP licences issued to man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt houses and trading houses will be those, as are required as raw materials, components, consumables, spares etc. related to the product exported by the export houses and trading houses, (emphasis supplied) When the licensing authorities themselves in terms of various other clauses have chosen to treat exporter-manufacturer on a different footing in permitting him to import goods relating to his other manufacturing activity of course, subject to actual user condition and not necessarily relatable or related to the product exported, it would be unreasonable to put a strained and laboured construction on the same and equate exporter-manufacturer with trading houses and export houses in respect of the facilities conferred by a R.E.P. licence. The learned counsel also placed reliance on a communication addressed to the appellant by the Joint Chief Controller of Imports and Exports, Government of India, New Delhi dated 24.3.86 offering clarification in respect of para 138(1) of the Policy AM 1984-85 and para 204(1) of the Policy AM 1985-88 stating that the products imported need not necessarily be related to the product manufactured and exported. The. learned counsel also assailed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o para 138 of Policy AM 1984-85 it would be beyond the jurisdiction of Customs authorities to ignore the same and construe the scope of the licence differently. It was further urged that the distinction now sought to be introduced by the learned D.R. on the expression "select product" occurring in para 204(1) of the Policy AM 1985-88 has not been set out in the show cause notice and as such the Department would be precluded from raising this issue afresh at this belated stage without affording the appellants an opportunity for rebuttal in conformity with the principles of natural justice. Further even if the Department is entitled to urge a plea on interpretation of the expression "select product" as envisaged by Appendix 16 of the Policy AM 1985-88 Shri Badsha urged that Serial No. 1 dealing with Engineering goods in Appendix 16 would partially cover the goods manufactured by the appellants and serial No. 4.2 would cover the goods exported by the appellants and in either way the import would be clearly covered by the expression "select product". 4. I have carefully considered the submissions of the parties herein. The crux of the whole issue arising for determination in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). A manufacturer-exporter holding a valid REP licence issued in his own name against exports of select products manufactured by him will be eligible to import within the overall value of REP licence items of raw materials, components, consumables, spares and packing materials which are related to select products exported or manufactured by him either in the same factory as the one from which the goods were exported against the REP licence concerned or in some other factory of the same name of the manufacturer. However, in respect of items covered by sub-para (2) below, import will be subject to the value restrictions indicated against the different categories of licence holders. The special facility will be subject to the following conditions:" In terms of para 204(1) a manufacturer-exporter such as the appellants in the instant case, holding a REP licence would be entitled to import raw material, components, consumables etc., which are related to select product exported or manufactured by him. The expression "select product" would only refer to export and not to manufacture. Appendix 16 of the Policy 1985-88 gives out select list of export product and the word "select product" i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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