COMMISSIONER OF CUSTOMS Vs. RIVERA INTERNATIONAL

JUDGEMENT

(1.) Revenue is aggrieved with the Commissioner (Appeals) order setting aside the Order -in -Original which held that the imported item Tungsten Halogen lamp is classifiable under ITC (HS) Classification of Export Import under Entry No. 8539.21 which refers to Tungsten Halogen Lamps, which are restricted consumer items and not permitted to be imported without a licence. As the importer had not produced any licence, therefore, the goods valued at Rs. 2,27,245/ - (CIF) was held to be imported in violation of provisions of Section 3(3) of the Foreign Trade (Development and Regulation) Act, 1992, and held to be liable for confiscation under Section 111(d) of the Customs Act. The same was ordered to be confiscated, however, the Additional Commissioner granted an option to redeem on payment of fine of Rs. 5,38,935/ - and also imposed penalty of Rs. 53,893/ - under Section 112(a) of the Customs Act.

(2.) The Commissioner (Appeals) set aside this order on the ground that DGFT by their letter dated 10 -10 -95 had clarified that the product projection lamps for projectors do not appear in the negative list of imports and hence can be freely imported without licence and on that plea, held it to be covered in the main Heading No. 85.39 with the description "Electric filament or discharge lamps, including sealed beam lamp units and ultra -violet or infra -red lamps; Arc lamps". Against this heading, the tariff states "such bulbs and lamps under this heading which are meant for specific use as component/spares in various types of equipments are freely importable". In view of this condition, the Commissioner (Appeals) held it to be importable without a licence overlooking the sub -heading 853921.00 with the description "Tungsten Halogen" which are restricted items and the condition is "consumer goods not permitted to be imported except against a licence or in accordance with a Public Notice issued in this behalf."

(3.) Revenue contends in this appeal that the imported item "tungsten halogen lamp" as described in the catalogue are specifically covered under ITC Heading 853921.00 requiring a licence for import. It is also stated that the clarification letter of the DGFT dated 10 -10 -95 does not cover this item in particular, and hence the order is not legal and proper.