SUNRAJ EXPORTS Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THIS appeal is directed against the order of the Collector of Customs (Appeals), Madras, dated 6-2-1987 confirming the order of the Deputy Collector of Customs, Cochin, dated 28-7-1986 confiscating the umbrella cloth panels imported by the appellant from Taiwan under Section 111(d) of the Customs Act, 1962, the 'Act' for short and permitting the redemption of the same on payment of a fine of Rs. 11,000/-facsides a penalty of Rs. 11,000/- under Section 112 of the Customs Act, !962.

(2.) The umbrella cloth panels imported by the appellants in April-May, 1986 from Taiwan were confiscated under the orders referred to above on the ground that they were not in any way related to the products exported by the appellant viz. cut and polished diamonds. The plea of the appellant is that the provisions of para 204(1) of Import-Export Policy, 198 5/1988 are applicable to the appellant and according to para 204(1) of the ITC Policy, a manufacturer exporter holding a valid REP licence issued in his own name against export of select products manufactured by him will be eligible to import with the overall value of REP licence items of raw materials, components, consumables, spares and packing materials which are related to the select products exported or manufactured by him either in the same factory as the one from which the goods were exported against the REP licence concerned or some other factory of the same manufacturer. The plea urged is that the usage of the word 'or' in para 204(1) of the ITC Policy referred to supra is conjunctive and should be so interpreted. Reliance has also been placed on the ratio of the ruling of this Bench in the case of Sunraj Exports Ltd. v. Collector of Customs, Cochin, in Order No. 253/87, dated 9-4-1987 and also the other ruling of this Tribunal in the case of Southern Sea Foods Private Limited v. Collector of Customs, Madras, reported in 1986 (26) CLT 89.

(3.) AS rightly contended by the appellant and fairly conceded by the learned D.R., the Tribunal in the said rulings has taken the view that the word "exporter or manufacturer" is clearly disconjunctive and not conjunctive and that a manufacturer exporter holding a REP licence would be entitled to import raw materials, components, consumables, etc. which are related to select product exported by him or manufactured by him. In the present case it is not disputed that the appellant is manufacturing umbrellas and the goods imported are only umbrella cloth panels. Following the ratio in the said rulings, I set aside the impugned order and allow the appeal.