Customs, Excise and Gold Tribunal - Tamil Nadu
M.M. Naina And Company vs Collector Of Customs on 20 December, 1988
Equivalent citations: 1989(22)ECC183, 1989(22)ECR157(TRI.-CHENNAI), 1990(46)ELT127(TRI-CHENNAI)
ORDER K.S. Venkataramani, Member (T)
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 S. Rajaram, the learned Consultant appearing for the appellants submitted that what they had imported is Electronic Circuit Testers (Multimeters) against additional licence issued to cover imports of items under Appendix I Part B in terms of para 265 (5) of Import & Export Policy book 1985-88. He submitted that Serial No. 10(140) was specific for item imported - electronic circuit tester which is specifically covered by this serial number. In regard to their claim of the goods against Serial No. 10(60) of the same Appendix, the learned Consultant submitted that there was an order of the Collector (Appeals) on an identical issue which held that these are covered by entry at Serial No. 10(60) of the Appendix on the ground that the criteria of 6.5 digits and above applies only to Voltmeter and not multimeter. In any case he submitted that the quantum of redemption fine was excessive.
4. 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).
5. We have carefully considered the submissions made by the learned Consultant and the learned D.R. The appellants have claimed the clearance of the goods imported against Additional Licence issued and in terms of para 265 (5) of the Import & Export Policy book 1985-88. This para says that the Additional Licences will also be valid for import of capital goods listed in Appendix I Part B which have been placed on OGL for actual users (Industrial). The invoice description of the goods is Electronic Circuit Testers (Multimeters) and in the invoice itself licence number is mentioned and also OGL APP I Part B, Serial No. 10(140). This is the serial number claimed in the relevant BE filed by the appellants. We have perused the description under Serial No. 10(140) and it is extracted above and we find that it is an inclusive entry. What is imported is Electronic Circuit Tester (Multimeter). According to McGraw-Hill Dictionary of scientific and Technical Terms Second Edition, page 1726, it is seen that the term volt- ohm-milliammeter is "a test instrument having a number of different ranges for measuring voltage, current, and resistance. Also known as circuit analyser, multimeter; multiplepurpose tester". In the light of the above we have considered the fact that Appendix I Part B Serial No. 10(140) is an inclusive entry. It is well-settled that the word 'includes' is often used in interpretation clauses in order to enlarge the meaning of the words or phrases occurring in the body of the statute. When it is so used, those words and phrases must be construed as comprehending not only such things as they signify according to their nature and import, but also those things which the interpretation clause declares that they shall include [Dilworth v. Commn. of Stamps (1899) AC 99; Comm. I.T. v. Taj Mahal Hotel' 72 A.SC 168; Orissa v. SAA. T Khan 75 TLR 1235; Indian Carbon v. Supdt. Taxes 72 A.SC 154]. In the above view of the matter we are unable to accept the finding of the Collector that Electronic Circuit Tester covered in this entry should be restrictive to milk analysers or that it refers to calibrators because we find that Electronic Circuit Tester is specifically mentioned in the inclusive description of the entry. In this view of the matter, we hold that the item is covered by entry at Serial No. 10(140) of Appendix I Part B of Import & Export Policy Book 1985-88 and as such the Additional licence produced is also valid for the imported consignment in terms of para 265 (5) of the Policy. As we have already found that Serial No. 10(140) of Appendix I Part B covers goods imported, it is not necessary to give any finding on the alternative entry - Serial No. 10(60). In the result the impugned order is set aside and the appeal allowed.