9911796707
TMI Blog1990 (5) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... were adjudicated and it was held by the Ld. Adjudicating Authority that Chilled Cast Iron Rolls appeared under Sl. No. 446 and Appx. 3 of AM, 1983-84 Policy and since Sl. No. 4 of Appx. 10 permitted import under OGL of spares other than those included in, inter alia, appx. 3, the import of the subject goods under OGL was not permissible and hence unauthorised and in contravention of the ITC Regulations. Accordingly, the said goods were ordered to be confis.c.ated under Sec. 111(d) of the Customs Act, 1962 but allowed to be redeemed on payment of a sum of Rs, 20,000.00 in the case of C-312/85 and Rs. 1,00,000.00 in the case of CD(CAL)-183/84. 3. In the Grounds of Appeal it was mentioned that the impugned orders are against the facts and law and the orders have been passed without granting fair or reasonable opportunity of personal hearing. It is also stated that the authorities below have not made any finding that the subjected goods are mentioned against Sl. No. 446 of Appx. 3 and therefore, outside the purview of Sl. No. 4 of Appx. 10 of Import Policy, 1983-84. It was also contended in the appeal grounds that the Ld. Collector failed to properly appreciate the grounds urged in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dly spare parts. The Ld. S.D.R. on the contrary contended that policy in respect of the items in question is very clear and the item imported is Chilled Cast Iron Rolls which have been declared as spare-parts for flour mill machinery. It was his contention that Appx. 3 also covers spares as would be evident from the caption of Appx. 3 and the item was, therefore, squarely hit by Entry No. 446 which covers all types of Cast Iron Rolls. It was his contention that since all types of Cast Iron Rolls are covered by Entry No. 446 of Appx. 3 they can be excluded from the purview of Entry No. 4 of Appx. 10. It was his contention that Entry No. 2 was not relevant at all inasmuch as it has to be read in the context of the Appx. mentioned therein. It was also contended that this entry presumably refers to Iron & Steel item other than finished parts which are either components or spares for which separate entries have not been provided. It was also his contention that Chapter 22, sub-para 5 of para 239 does not help the appellants, inasmuch as this paragraph has to be read in the context of the fact that these appendices have entries regarding components and therefore, if a part is specificall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be determined by us in these two cases are as follows :- (i) Whether chilled cast iron is different from cast iron and other iron? (ii) Whether the chilled cast iron rolls which are imported by the appellants are covered in Appx. 3, Sl. No. 2 as iron and steel item? (iii) Whether they are covered by Appx. 10(4) and alternatively by Entry No. 2 of Appx. 10? (iv) Whether the redemption fine of Rs. 20,000.00 imposed on the appellants is necessary in the circumstances of these cases? 8. As per the first point is concerned, the Ld. Representative relied on the American Publication on Metals Hand Book, Ninth Edition, Vol. I, Properties and Selection : Irons and Steels, wherein it is observed as follows : "The term "Cast Iron", like the term "steel", identifies a large family of ferrous alloys. Cast irons primarily are alloys of iron that contain more than 2% carbon and from 1 to 3% silicon. Wide variations in properties can be achieved by varying the balance between carbon and silicon, by alloying with various metallic or nonmetallic elements, and by varying me.l.t. ing, casting and heat treating practices." "Cast irons, as the name implies, are intended to be cast to shape ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from graphite carbon. In the production of chilled iron, the composition is selected so that only the surfaces cast against the chill will be free from graphite carbon. The more slowly cooled portions of the casting will be gray or mottled iron. The depth and hardness of the chilled portion can be controlled by adjusting the composition of the metal." (d) The main difference in microstructure between chilled iron and white iron is that chilled iron is fine grained and exhibits directionality perpendicular to the chilled face, whereas white iron ordinarily is coarse grained, randomly oriented and white throughout, even in relatively heavy sections. (Fine grained white iron can be produced by casting a white iron composition against a chill). This difference reflects the effect of composition difference between the two types of abrasion-resistant iron. Chilled iron is directional only because the casting, made of a composition that ordinarily is gray, has been cooled through the eutectic temperature so rapidly at one or more faces that the iron solidified white, growing inward from the chilled face. White iron, on the other hand, has a composition so low in carbon equivalent or so r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s : (i) Permissible spares i.e. items other than those appearing individually in appendices 3, 4, 15 and 30 and (ii) Non-permissible items individually appearing in appendices 3, 4, 30. 13. The Ld. Consultant staled that the chilled cast iron is covered under Appx. 10 which mentions the item allowed to be imported under OGL. In Appx. 10(2), it has been mentioned the iron and steel items other than those included in the Appendices 4, 6, 7 and 8 and in Appx. 10(4), it is mentioned permissible spares (i.e. items other than those included in Appendices 3, 4, 15 and 30). It was, therefore, his contention that these cases will fall under Appendix 10(4) or alternatively under Appx. 10(2). Appx. 10(4) mentions permissible spares other than those included in Appendices 3, 4, 15 and 30. The case of the Department is that Chilled Cast Iron is covered by Appx. 3, Sl. No. 446. In this regard, the caption to Appx. 3 is relevant and reads as follows : "Raw materials, components, consumables, took and spares (other than iron and steel and ferro-alloys)". 14. On a perusal of Sl. No. 446 of Appx. 3 it is mentioned "cast iron and cast steel rolls (finished weight per roll upto 30 tonnes), for ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y equipment, control and laboratory equipment and safety appliances. It is, thus, seen that Chilled Cast Iron Roll is covered under Sl. No. 4 of Appx. 10 and is not hit by Sl. No. 446 of Appx. 3. We are, therefore, of the considered view that spare parts which are chilled cast iron roll imported by the appellants comes within the purview of Appx. 10(4) and it is not included either in Appendices 4,6,7 and 8 or Appendices 3,4,15 and 30. Therefore, the importation was not hit by Appx. 3, Sl. No. 446, as contended by the Department. In such circumstances, we are of the considered opinion that the order of the Collector upholding the order of the Ld. Deputy Collector of the Customs passed on 30-7-1984 by upholding that the goods under clearance which is chilled cast iron roll appeared in Appx. 3, Sl. No. 446 and that the same did not fall within the purview of Sl. No. 4 of Appx. 10, is not correct and accordingly, the same is set aside and the appeals are accepted. In view of this finding on point Nos. 2 and 3, point No. 4 does not survive and the appeals are accordingly accepted. It is hereby ordered that the spares in question be returned to the appellants. X X X X Extracts X X X X X X X X Extracts X X X X
|
