TMI Blog1986 (9) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants M/s. Indian Card Clothing Co. Ltd. imported D.C. Drive Gear Box as spares for Hydraulic Spooler under OGL Appendix 10(4) during AM 1981 Policy. The Customs, however, objected for the clearance on the ground that the imported goods fell under E/No.4 of Appendix 30 and therefore non-permissible spare parts. The Dy. Collector of Customs who held the adjudication rejected the appellants contention that Appendix 30 covers Motor and Gear Box by separate entries and the imported goods an integral unit meant for Hydraulic Spooler. Having regard to his finding, the Dy. Collector ordered confiscation but allowed redemption on payment of fine of Rs. 23,000/-. On appeal, the Collector (Appeals) confirmed the order passed by the Dy. Coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tegral unit controlled by an Electronic Control Panel that enables giving uniform winding of the wire on the spool while varying the speed automatically and keeping the tension and torque constant during the entire process of winding. 4. During the hearing of the appeal, Shri Shah reiterated the contentions raised in the appeal memo. He urged that what was imported was neither gear box nor motor but an integral unit having a single shaft connecting motor and gear box. Therefore, the Customs authorities were not justified in holding that the items imported fell within Appendix 30. Shri Shah also contended that the motor and the gear box cannot be assembled. He urged that in the case of an ordinary motor the speed is always constant but in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the matter of imposition of fine and no further concession is called for. 6. Shri Shah, in reply contended that gear box will have more than one gear it will not have motors and therefore the imported goods cannot be considered as a gear box. He further submitted that what was banned under Item 591 of Appendix 3 is A.C. Motors but what had been imported is a combination of motor and gear box and the motor is a D.C. Motor. Finally Shri Shah urged that the banning of certain items in the ITC Policy is intended to encourage indigenous industries. But then the items imported were admittedly not manufactured in India and therefore it cannot be said that the Policy prohibited the import of the item in question. 7. I have carefully conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the fact that the motors and gear boxes are non-permissible spares and geared type motors are banned items falling under Item 591 of Appendix 3. 8. It is not contended by the Department that the D.C. Drive and Gear Box imported by the appellants were not required as spares for their Hydraulic Spooler. It is also not contended by the Department that the D.C. Drive and Gear Box imported by the appellants can be made use of for any purpose other than the purpose for which it was imported. Admittedly, the imported items are an integral unit connected by a common shaft. Neither the motor. nor the gear box is detachable. The gear box and the motor are not assembled so that they can be dis-assembled. What was imported is one integral unit. If ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dy. Collector accepted the appellants contention that the D.C. Drive and Gear Box forms an integral part of Hydraulic Spooler. His finding was that even if the item imported is considered as an integral part of Hydraulic Spooler still the import cannot be permitted because the item falls under Appendix 30. The Dy. Collector, however, did not choose to give any reason how the item imported falls within the scope of Appendix 30. The Collector (Appeals), no doubt, recorded a finding that the impugned goods are complete Gear Box with Electric Motor. He also held that the addition of Electrical Control Panel is immaterial because it does not alter the basic function of the goods. The Collector (Appeals) has not properly appreciated the contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctric motors totally enclosed fan cooled and screen protected, squirrel cage upto 30 HP other than with insulation class F and H including geared types . The description of the items imported is given in the invoice as: Spare D.C. Drive and Gear box for main drive of Hydraulic Spooler, complete with Electronic Control Panel, giving base torque and tension control . Having regard to the invoice description, the contention of Shri Pal that the goods imported fall within Item .591 of Appendix 3, cannot be accepted. The further contention of Shri Pai that the ratio of the decision of this Bench in the Appeal No. CD(T)(BOM)418/80 M/s. Kirloskar Cummins Ltd. Pune v. Collector of Customs, is applicable to the present appeal also cannot be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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