TMI Blog1984 (6) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... orate arguments have been made on behalf of the Customs authorities as well as the writ petitioner and our order on the said three applications will dispose of not only the three stay applications and the appeals filed by the Customs authorities but the three writ petitions as well. 2. On or about 21st January, 1984, the vessel SS Rameno Everette arrived in the Port of Calcutta. 13 Bills of Entry covering the aforesaid three cases were submitted by the three Export Houses being M/s Siewert Dholakia (P) Ltd., M/s F. Ahmed Co. and M/s Mallik Co., with the Customs authorities. The articles sought to be imported by the said three Export Houses are alleged to be covered partly by the Additional Licences and partly by REP licences. 3. The articles which are sought to be imported under the Additional Licences in the aforesaid three cases are Picture Tubes, Plastic Moulded Parts, Plastic Moulded Parts - front and back covers, Electronic Tuners, Remote Control and Colour Picture Tube. The articles sought to be imported under the REP licences are Printed Circuit Boards, Transformer including Audio/Video Printed Circuit Board, Tuners, Speakers and Deflection Wires. 4. The Additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y several Bills of Entry submitted by M/s M. Dutta Agency. From the documents seized, it is alleged, it is apparent that the Additional Licences had been transferred for consideration. It is further alleged that prior to 8-3-1984 neither any document was filed nor any representation was made to the Customs Authorities that a part of the imported articles are also covered by REP licences or any other licences held by the importers at the time of importation or clearance or that the writ petitioner had purchased the goods on High Sea Sale basis. It is only in the writ petitions filed by the writ petitioner on 8th March, 1983 it has been stated that a part of the goods are covered by REP licences and the writ petitioners had purchased the goods on High Sea Sale basis from importers. It has been further alleged that while the matter was before this court, the REP licences were submitted to the Customs authorities on 15th March, 1984. In this context, it is alleged, the Customs authorities were therefore justified in withholding the clearance of the goods as the goods imported and sought to be cleared were not covered by the Additional Licences mentioned in the Bills of Entry. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vered by the licences. The Customs authorities have allowed clearance of identical goods against identical licences in respect of other Export Houses. It is the case of the writ petitioner that the learned trial Judge rightly directed the release of the goods upon payment of the duty to be assessed. 6. The first contention of Mr. Dipankar Ghosh for the Customs authorities is that if all the consignments covered by all the bills of entry in the case of three export houses are assembled together, there will be complete T.V. Sets and as such their import is prohibited. Such a course, however, cannot be adopted to find out whether individual licence covers the goods imported. It is a sheer coincidence that all the consignments have arrived at a time. One has to look into the respective licence. The writ petitioner may have purchased all the articles covered by all the licences but that cannot be a ground for withholding the goods alleging that complete T.V. Sets have been imported. We are, therefore, unable to accept this contention of Mr. Ghosh. 7. Mr. Dipankar Ghosh, the learned Counsel appearing for the Customs Authorities has then contended that Para 186(9) which applies to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ont and back covers fall within Appendix 5 of the Import Policy of 1982-83 at Serial No. 500 which is to the following effert :- 500. Plastic extruded/moulded components Similarly, Picture Tubes come under item 6 of Appendix 8 which is to the following effect :- 6. T.V. Picture Tubes/CRTS for Television Sets (all types) . Thus the aforesaid articles i.e. Plastic Moulded parts etc. and picture tubes are covered by the Additional Licences. Mr. Ghosh has not seriously disputed that the Additional Licences covered the aforesaid items. He, however, contends that the Additional Licences are not transferable and in this case Additional Licences had been sold and not the goods covered by the Additional Licences. On the facts of this case, we are unable to hold that the Additional Licences had been transferred. The Bills of Entry were produced before us. The Bills of Entry were endorsed by the Export Houses. The statement of the writ petitioner that the documents had been negotiated and retired by the Export Houses through their respective Banks and the High Sea Sale agreements were signed and executed by the Export Houses had not been controverted. The Customs Authorities relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posal of goods to Actual Users under the import policy in force." 9. Mr. Ghosh has relied on paragraph 383(2) of the Hand Book of the Import-Export Procedures 1983-84 in support of his contention that Export Houses are not allowed to appoint agents or issue letters of authority for operating the licence or for distribution of imported goods on their behalf. Apart from the fact that the Export Houses have themselves taken steps for import of the goods by placing the order, by negotiating documents with the Banks, by submitting the Bills of Entry and by executing the agreement for sale of the articles in question, the said restriction as enjoined by paragraph 383(2) must be read with the aforesaid proviso to clause 5(3) of the Imports(Control) Order, 1955. 10. Paragraph 186(10) of 1982-83 Policy provides that goods imported by Export Houses against Additional Licences will be disposed of by them in the same manner and subject to the same condition as laid down in paragraph 185. 11. Paragraph 185(11) provides that raw materials and components imported by Export Houses may be disposed of by the Export Houses to the actual user. Paragraph 185(c)(iii) provides that spares may be di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the T.V. Picture Tubes and Plastic Moulded parts. 13. The other two items sought to be imported on the strength of the Additional Licences are Electronic Tuners and Remote Control. It is the contention of the writ petitioner that even if these items imported do not fall under Appendix 3, the import of the same is permissible under O.G.L. under 1983-84 Policy. Paragraph 186(8) of 1983-84 Policy is to the following effect:- The additional licences will also be valid for import of Capital Goods listed in Appendix 2 and raw materials, components, consumables and spares (excluding items covered by Appendix 5) which have been placed as Open General Licence for Actual Users (Industrial). This facility will be subject to the same conditions as laid down in para 185 above, except that the endorsement referred to in sub-para 185(3) will not be required in the case of Additional Licences which are already non-transferable. Appendix 10 of 1983-84 Policy specifies the import of items under Open General Licence. The items at Serial No. 1 mentioned therein are as follows -"Raw materials, components and consumables (non-iron and steel items) other than those included in the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re Printed Circuit Boards, Transformers, Speakers, Electronic Tuners and Deflection Wires. The REP licences are governed by 1983-84 Import and Export Policy which permit import of goods as mentioned in A.35(d) of Appendix 17 of 1983-84 Policy. Appendix 17 of the Import Policy of 1983-84 deals with the Import Policy for registered Exporters. Item A.35 is in the following terms: Sl. No. Export Product. Import Replenish- ment per- centage Materials per mitted- for import Remarks A.35 All Electronic items/equipments/Systems/components including computer Systems/peripherals Digital watches, clocks and time pieces. 20% (A) Special production aids for electronics industry namely Wrapping Unwrapping tools, aligning tools, disoldering tools I.C. Extractor (20%) (1) The Registering authority for cassettes /cartridges, Pre-recorded Cassettes/Cartridges and Pre-recorded Video Cassettes will be the plastics and linoleum Export Promotion Council. (B) Passive components (Resistors capacitors of all kinds) (30%) (c) Active components (Transistors diodes other semi-conductor Devices, valves Integrated Ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted, one cannot say that there has been import of certain active components or passive components. Thus the contention of Mr. Ghosh on the facts of this case and having regard to the item in question cannot be accepted. 20. The next contention of Mr. Ghosh is that from the expression used in A.35(d) - Any other items of electronic components .... appearing in Appendix 3 ..... used in the manufacture of electronic items it follows that a distinction has been made between electronic components and electronic items . What can be imported under the licence are only electronic components appearing in Appendix 3. It is his further contention that Serial No. 561(21) of Appendix 3 gives a complete list of electronic components for the purpose of the said Appendix. These are Diodes, Transistors, Thristors, Micro Circuits Connectors, Relays, Switches, Resistors, Capacitors and Electronic Tubes. Therefore, according to him, Printed Circuit Boards, Transformers, Speakers, Tuners, Deflection Wires etc. sought to be imported under the REP licence under A.35(d) are not electronic components appearing in Appendix 3 and accordingly are not covered by REP licence. According to Mr. Ghosh, Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her A.35(d) covers the items which are sought to be imported by the writ petitioner. The contention raised by Mr. Ghosh although sounds attractive but on the interpretation of A.35(d) such contention cannot be accepted. The reasons are many. It is true that electronic components are parts of electronic items. Appendix 3 of 1983-84 Policy deals with raw materials, components, etc. A.35(d) not only speaks of electronic components, but also of new materials appearing in Appendix 3 used in the manufacture of the electronic items. It cannot be disputed that items like Printed Circuit Boards, Speakers, Electronic Tuners, Deflection Wires etc. are used as raw materials in the manufacture of a television set. In interpreting A.35(d), one cannot ignore the expression raw materials . If the argument of Mr. Ghosh has to be accepted then the expression raw materials has to be completely ignored. But entire Appendix 3 relates to both components as well as raw materials. Item No. 564 of Appendix 3 is in the following terms:- 564. Kits/ready to assemble sets, assemblies, sub-assemblies, modules, and combination thereof all electronic items (excluding items mentioned in Appendix 5) appearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h, 1984 is set out hereunder:- POINT NO. I (WHETHER ELECTRONIC SUB ASSEMBLIES ARE COVERED BY THE TERM ANY OTHER ITEM OF ELECTRONIC COMPONENTS" APPEARING AGAINST (d) UNDER COLUMN 4 AGAINST E.NO. A.35 IN APPENDIX 17 OF AM-84 (IMPORT POLICY BOOK) NO. 155/8411. BRIEF 23. M/s Standard Radio Corporation have imported Electronic Sub-Assembly for Wako Car Cassette Player vide B/Entry No. 2650/49. Clearance is being claimed against Licence No. P/K/2980572, dated 14-12-1983. This is an REP licence against the product group A.35. Importer is claiming the clearance of the goods under sub-serial No. d in Column 4 of the Appendix 17 against entry A.35. This reads as any other items of Electronic components and raw materials, appearing in Appendix 3 and canalised list in the Import-Export Policy used in the manufacture of Electronic items. Electronic sub-assemblies are appearing in Appendix 3, Sl. No. 564. 24. Attention is invited to para 8 of Appendix 17. The objective of the REP licence is to provide raw material, component, etc. used in the manufacture of the goods exported. In this particular case what exactly the goods have been exported by M/s Indian Engineering Co., Bombay, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onic items comprised both discrete components as well as assemblies being covered by A.35(d). There cannot be two different interpretation with regard to the scope of A.35(d) depending on which port the goods are unloaded for Customs clearance. It is also on record that the Chief Controller of Imports and Exports by a letter No. 7/9/83/EPC/2021, dated 6-8-1983 clarified that under A.35(d) of Appendix 17 of Import and Export Policy of 1983-84, electronic components and raw materials can be imported. On the basis of the said clarification the sub-assemblies under Serial No. 564 can be imported under A.35(d) licence. In the premises, we are unable to accept the contention of Mr. Ghosh that A.35(d) will not cover the articles sought to be imported against the REP licence. It is well settled that if the interpretation of a fiscal enactment is open to doubt, the construction most beneficial to the subject should be adopted even if it results in his obtaining an advantage. One can only look fairly at the language used but nevertheless, fiscal law has to be interpreted reasonably and in consonance with justice. If the Revenue Authorities have understood the scope of relevant clause in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose cases are contrary to Import Policy or they have allowed clearance by any mistake or inadvertance. The Joint Committee also interpreted the scope of the items involved in these proceedings and released and goods on the basis of the said interpretation. Thus there cannot be double standard of judgment, one for the Calcutta Port and the other for the Bombay Port. If it is allowed then there would be discrimination between an Importer at Bombay and an Importer of Calcutta which cannot be permitted. Since the Import Policy and Customs Act are All India Policy and Statute, it is eminently desirable that there should be an uniformity of construction by the authorities in applying the provisions of the said Act and the Policy. 31. All the contentions raised by the Customs Authorities are thus disposed of. In the result, these applications fail. All interim orders passed by this court in the said applications are vacated. The Customs Authorities are directed to complete the assessments within three days from date and to release the goods forthwith upon payment by the writ petitioner the amount of duty assessed, after adjustment of the provisional duty, if any, paid by the writ petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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