AMAR ROLLER FLOUR MILLS Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THESE are two appeals filed by the appellants - one against the order of the Ld. Collector (Appeals) dated 19-12-1984 and another against the order of the Ld. Collector of Customs, Calcutta dated...1984.

(2.) The brief facts of the cases are as follows :

(3.) WE have heard the learned representative and the learned S.D.R. at length. The Ld. Consultant for the appellants Shri P.N. Gupta stated that the appellants, had imported Chilled Cast Iron Rolls Spares for their flour mills machinery and claimed clearance under OGL (Appx. 10 of 1983-84 Policy). But the Customs considered it as hit by appendix 3, SI. No. 446 of the 1983-84 Policy and held that they could not be allowed under Appx. 10, SI. No. 446 of 1983-84 Policy and therefore, could not be allowed under Appx. 10 SI. No. 4. It was his contention that the Ld. Adjudicating Officer as well as the Appellate Authority erred in holding so. Appx. 3, according to him, covers raw-materials, components, consumables, tools and spares (other than iron & steel and ferro alloys) and the word 'spares' has to be understood in terms of the definition thereof, at page 2. That means, a part of some assembly or substitution that is ready to replace or ready for fitment. It was his contention that the items imported were declared as spare-parts in the Bill of Entry which was accepted by the Customs and they were classified accordingly. Spare-parts mean parts of definite shape and size and ready for fitment as held in Tribunal's order reported in 1989 (39) ELT 664 to 666 - Collector v. Heavy Engg. Corporation Ltd. It was also his contention that Entry No. 446 referred to by the department is in respect of Cast Iron/Cast Steel Rolls (finished upto 230 Tons for industrial use). Therefore, it was contended that with reference to the language and reference to weight, it shows that this Entry is not intended to cover spare parts i.e. parts ready for fitment. In this connection, he would also like to draw attention to Chapter 22 clarifications, given in paragraph 239, sub-para 5 which shows that Appx. 3 and 5 do not refer to spares anywhere. It was, therefore, his contention that some entries therein relate to components, sub-assemblies, consumables or modules, whereas the item does not appear individually elsewhere in these appendices i.e. in its own name, it could be imported as a spare under Chapter 9 by the eligible actual user. It was contended that Entry No. 446 could not be said to cover spare parts as the items imported by them are admittedly 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 specifically imported its importation would be permissible as spares provided it does not bar as such elsewhere in any appendix.