M M NAINA AND COMPANY Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THIS appeal is directed against the order of Collector of Customs, Bangalore, dated 19-2-87 by which he had ordered confiscation of a consignment of digital multimeters of 3-1/2 digits under Section 111(d) of the Customs Act, 1962. The appellant was given an option to redeem the goods on payment of fine in lieu of confiscation of a sum of Rs. 2,00,000/-.

(2.) The brief facts are that the appellant imported a consignment described in the BE as Electronic Circuit Testers (Multimeters) by air at Bangalore and claimed clearance of the goods against OGL against Additional Licence in terms of para 265 (5) of the Policy Book which lays down that Additional licences are valid for import of capital goods listed in Appendix I Part B which have been placed on Open General Licence. They claimed clearance of the goods against Serial No. 10(140) of Appendix I Part B. The goods allowed import against this Serial No. is "Special Testing and calibration equipment for electronic milk analysers, including calibrator, milk-o-tester, homogeniser tester, cuvette tester and electronic circuit tester". They claimed that the item is also covered by Serial No. 10(60) of the Appendix I Part B which is for Precision digital RMS multimeters and voltmeter (6-1/2 digits and above). The Department was of the view that Serial No. 10(140) permitted special testing and calibration equipment for electronic milk analyser and also that Serial No. 10(60) covers digital multimeters and voltmeters of 6.5 digits and above, whereas the goods imported were less than that. On this ground the licence produced was held to be not valid for the import and proceedings were instituted against the appellants for unauthorised import which cluminated in the Collector's order.

(3.) SHRI C.V.Krishnan, the learned D.R. appearing for the Department contended that the description against Serial No. 10(140) of Appendix I Part B applies to such equipments as are made for electronic milk analysers whereas, the general purpose Electronic Circuit Tester imported by the appellants would not be covered by this entry. The Collector in his impugned order has also considered the order of the Collector (Appeals) referred to and relied upon by the appellants and has given his reasons for differing from the Collector (Appeals).