CHEMILAB CORPORATION Vs. COLLECTOR OF CUSTOMS APPEALS

JUDGEMENT

(1.) THESE appeals involve a common issue namely whether certain laboratory chemicals can be imported against Open General Licence if the corresponding chemicals themselves are either banned or restricted. THESE appeals were heard together when on behalf of both the appellants and the Department, arguments covering all these appeals were presented. A written note was also submitted by the learned departmental representative, a copy of which was made available to the appellants for their reaction thereto. After taking into account the arguments of both the sides, we pass the following common order.

(2.) The imports by the appellants of certain laboratory chemicals were held to be unauthorised and subjected to penal action. The goods were confiscated but allowed to be cleared for home consumption on payment of fines in lieu of confiscation. The objection to the imports was on the basis that in Appendices 3 and 5 some of the items imported are specifically mentioned as banned items and restricted items respectively. Accordingly, it was held that the impugned goods were not permissible for import under OGL provisions. The matter was agitated by the appellants before the Collector of Customs (Appeals). They took the stand that laboratory chemicals and reagents are a separate class of compounds and though they may appear in same appendices in a general way without reference to quality, grade etc., the laboratory chemical grade of such chemicals should be taken outside the scope of such Appendices. They referred to Sl. No. 179 of Appendix 5 which bears a specific description "Laboratory and Reagent Chemicals, the following". Similarly Sl. No. 292(4) of Appendix 5 covers Potassium Fluoride A.R. (Analytical Reagent) and Technical Grade, as distinct from the generic description Potassium Fluoride. It was contended before the Collector (Appeals) that the items imported were for use in the laboratory for quality control as evident from the packing, purity, grade and quality. For purposes of assessment under the Customs Tariff they are classified as laboratory chemicals under a specific single heading and not according to their generic description under different Tariff Headings.

(3.) AGGRIEVED with the orders of the Collector (Appeals) confirming the earlier orders of the Assistant Collector, the appellants have filed the present group of appeals. The appeals were heard on different dates. They followed up their oral submissions with a letter showing evidence of release of similar goods under Open General Licence.