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3. Shri G. Shiv Das, ld. Advocate, submitted that as per the ITC (HS) Classification of Export & Import Items issued by the Ministry of Commerce, Electronic diaries are classified under the harmonised EXIM code 8471 permitting the importation against Special Import Licence (SIL); that the Appellants sought clarification from the Director General of Foreign Trade (DGFT) under their letter dated 23-10-1996; that the DGFT, under letter dated 31-10-1996, clarified that electronic diaries under EXIM Code No. 84711000.10 in the ITC (HS) Classification of Export & Import Items are allowed to be imported against freely transferable SIL; that the same clarification was given by DGFT under letter, dated 5-11-1996 and 19-11-1996 to Export Promotion Council and M/s. Casio Bharti Mobile Communication Ltd., respectively; that once the impugned goods are categorised as digital diaries, then for the purpose of import, the classification given by the DGFT is final and binding. In support of his contention, the learned Advocate referred to the Preface to the EXIM Policy (1-4 1992 to 31-3-1997) wherein it was mentioned as under :

"With the publication of the "Export & Import Policy aligned on ITC (HS) Classification," in October, 1995 the areas of ambiguity and dispute of the importability and exportability of items included in the negative List of Imports and Negative List of Exports were significantly reduced. This document has been reviewed in detail and the revised document is now being officially notified under the provision of paragraph 8 of this Policy, under the title "ITC (HS) Classification of Export & Import Items" providing greater transparency on the export and import licencing Policy and compatibility with the system of Commodity classification, adopted by Customs Central Excise and the Directorate General of Commercial Intelligence and Statistics."

4. He also referred to Para 20 of the Export & Import Policy which provides that if any doubt arises in respect of the interpretation of any provision contained in this Policy, the question or doubt shall be referred to the DGFT "whose decision thereon shall be final and binding." He, further, submitted that the intention of the Government was to permit the import of Electronic Diaries against freely transferable SIL is clear from the fact that even in the earlier ITC (HS) Classification, the position of freely importable was there; that in the present ITC (HS) Classification the import of the Electronic Diaries is made free; that in the earlier Policy of 1996, in relation to items covered under APR-35, Electronic Diaries by description were importable under freely transferable SIL. In this regard, he referred to Public Notice No. 338 (PN) 92-97 dated 2-1-1996 issued by the DGFT. Finally, the learned Advocate mentioned that the DGFT is the final authority for deciding whether the importer under a SIL is restricted or otherwise as held by the Tribunal in the case of Cine Land v. CCE, 1999 (114) E.L.T. 653.

8. The imported goods have been ordered to be confiscated as the same were imported without a specific import licence, goods being consumer goods as they were not classifiable under 84711000 of the ITC (HS) Classification. There is nothing brought on record by the Revenue to show that the Electronic diaries mentioned in ITC (HS) Classification are different from the electronic diaries imported in the present matter. If there was any doubt, the Customs authorities should have sought the clarification from the DGFT instead of disregarding the classification issued by it. In view of the specific mention of Electronic diaries in Sub-heading 84711000 of the ITC (HS) Classification coupled with the clarification given by the DGFT, which is binding on Customs Authorities, we set aside the impugned Order and allow the Appeal filed by the Appellants.