TMI Blog1991 (8) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... er glass, and some of the components imported by the assessee) were not covered by the licence, it is not quite clear to what extent the components claimed by the assessee to form part of the main frame or drum assembly are not covered by the licence. Thus the case require a second and a closer look, if not with a view to give complete relief to the assessee, at least to determine a reasonable quantum for the redemption fines as well as the penalty. Appeal allowed by way of remand. - 4695-98(NM) of 1990 - - - Dated:- 20-8-1991 - S. Ranganathan, M. Fathima Beevi and N.D. Ojha, JJ. [Order per : Ranganathan, J.] - On November 28, 1981, the appellant company applied for a licence to import, inter alia, components of plain paper copiers, the manufacture of which was to be started by them shortly under an agreement of technical collaboration with the Nashua Corporation, U.S.A. The C.I.F. value of the licence applied for was as follows : Item Value Value (Rs. in millions) (Rs. in crores) (i) Components 28.800 2.8800 (ii) Accessories 1.007 0.1007 (iii) Consumables ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 15,00,000 (11,25,000) 2,00,000 (1,50,000) [N.B. : The figures in brackets represent the amounts of fine and penalty as reduced on appeal by the Tribunal.] 3. The four orders of the officer are on similar lines. He found - (i) that the appellant had imported a number of items (as per the list in the licence) in complete assembly with the main frame; (ii) that they had imported a number of "mounted PCB assemblies (including main control unit), lens system, halogen lamps, auto-transformer units, power supply unit, exit rollers, drum shafts, blowers, motors, gears, capacitators relays" and many other innumerable small parts which cannot be arranged and identified straightaway, which are not shown in the list attached with the licence and which cannot be considered to be part of the main frame itself as claimed by the appellant; and (iii) that they had imported 100% of the parts of the photocopying machine out of which 70% are assembled together with the main frame and the balance of 30% can be assembled very quickly without any serious effort. In short, the charge was that the appellant had virtually imported complete photocopier machines whereas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d hold that the Collector correctly held that the licence did not cover the goods. Consequently the confiscation under Section 111(d) is upheld." 5. The assessee appeals. 6. Shri Salve, learned counsel for the appellant submits that, even if it is assumed that there was some technical violation here or there, this was not a case in which such heavy penalties and fines should have been imposed. He invites our attention to the decision of this Court in Union of India v. Tarachand [1983 (13) E.L.T. 1456 (SC) = 1971 3 SCR 557]. In that case, under entry 294 of the relevant schedule of the Import Trade Policy, the import of motor cycles and scooters was permitted under an appropriate licence but such a licence could not be used for their import in a completely knocked down condition except by approved manufacturers. Under entry 295 parts of motor cycles and scooters (except for tyres and tubes) could be imported under an appropriate licence. The respondents before the Supreme Court had a licence for imports under entry 295 and they imported all the component parts of scooters and motor cycles (except tyres and tubes) in two separate consignments in such manner that putting the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances, he submits that there was really no violation of the terms of the licence. In this connection, he draws our attention to a passage from the relevant Import Control Handbook which provides that, in cases of doubt, the Import Trade Control authorities should be consulted which was not done in this case. Pointing out that no proceedings had been initiated by the Import Trade Control authorities against the appellant for violation of the licence, he submits that the Tribunal should have relieved the appellant of the fines and penalties. 7. On the contrary, the Learned Additional Solicitor-General contends that the import licence was granted to the appellant in pursuance of a scheme to encourage indigenous manufacture of copying machines by allowing imports of only certain parts, components and accessories in a phased manner but the appellant was abusing the facilities so afforded by practically importing the entire machine including even parts and components the import of which was not permissible under the licence. He, therefore, submits that the heavy fines and penalties were fully justified. 8. After hearing both counsel we have come to the conclusion that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the "main frame" does not include any components other than a frame was justified. Secondly, we think some indication about the components mentioned in the licence could have been gathered from the values set out in the licences. We have mentioned earlier that the value of 1500 numbers of copier frames as shown in the first licence was of the tune of Rs. 1.27 crores and that of 589 nos. specified in the second licence was Rs. 28.23 lakhs. We have no idea whether the value of each main frame, if understood in the manner in which the Tribunal has explained it, would be so high as to comprehend this item in the licence. In the absence of the individual values of the main frame and other components, it is very difficult to say whether the Tribunal was justified in restricting the item "copier frame" only to "main frame" and to mean no component parts other than the "main frame". Thirdly, the concepts involved are quite technical. As pointed out on behalf of the assessees, in such circumstances, the customs authorities are required to take the assistance of the import trade control authorities [vide, e.g., para 325 of the Handbook of Import-Export Procedures for the year 1984-85]. Thou ..... 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