Ajit K.Sengupta, J. - (1.) In this application under Section 130(1) of the Customs Act, 1962, the following questions of law have been referred to this Court: "1. Whether, on the facts and in the circumstances of the case and on a true interpretation of para 54B (iii) of the relevant Import Policy of 1978-79, each type and size of mechanical seal imported by the applicant should be treated to be a single item for the purpose of the said paragraph? 2. Whether, on the facts and in the circumstances of the case each type and size of mechanical seal imported by the applicant should be considered to be a different item and its import allowed accordingly if the value of each such item was within the limit of Rs. 50,000/- as laid down in para 54B(iii) of the relevant Import Policy of 1978-79? 3. Whether, on the facts and by reason of the definition of "spares" appearing in the Import Policy, each mechanical seal imported by the applicant is to be treated as a separate item of spare and the limit of the value of Rs. 50,000/- as laid down in para 54B(iii) of the relevant Import Policy should be applicable on each such seal? 4. Whether, on the fact and in the circumstances of the case, two interpretations of para 54B(iii) of the relevant Import Policy were possible and that the interpretation which was more favourable to the applicant, should be applied and it be held that the import of the mechanical seals in question was legal and justified? 5. Whether, on a finding by the Appellate Tribunal that the applicant was the actual user of the mechanical seals and that there was no intention on the part of the applicant to infringe the Import Trade Control Regulations, any fine in lieu of confiscation (which is penal in nature) could or should have been imposed? 6. The Appellate Tribunal having discharged the applicant from the charge of violation of the Import Trade Control Regulations in respect of the subject consignment, whether following the ratio of the judgment in Hindustan Steel Limited case, the applicant can be made liable to pay the fine?".
(2.) The facts leading to this reference are that the applicant imported mechanical seals, admittedly of different sizes and specifications, valued at Rs. 1,49,980/- and sought clearance thereof against the Import Licence No. 1439458 dated 27th January, 1979, issued for non-permissible spares as per para 54B(iii) of the Import Policy for the period 1978-79.
(3.) The Respondent, however, declined to allow clearance on the ground that as the applicant imported mechanical seals of a total value exceeding Rs. 50,000/- the importation was unauthorised. After a hearing afforded to the applicant, an Order-in-Adjudication was made confiscating the goods under Section 111(d)/111(m) of the Act and imposing a fine of Rs. 20,000/- in lieu of such confiscation to be paid within a month from the date thereof. The aforesaid order of adjudication was confirmed in appeal. A revision filed before the Govt. of India against the Order in appeal, was transferred to the Tribunal and heard as if it were an appeal pursuant to the provisions contained in Section 131B(2) of the Act.;