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3. The adjudicating authority has followed the provisions of Paragraph 7(12) of the EXIM Policy. He has also referred to Public Notice No. 338/PN/92-97 dt. 2.1.96 which provided for importation of "Dlectric drilling machine (carpenter's tool) 10 MM BD-56". In the instant case it has been found by the adjudicating authority, that it is a 13MM two-gear drill. Therefore it will be in the category of Special Import Licence. As against this the Commissioner (Appeals)as held as follows:

"The appellant has pointed out that the imported item is not an ordinary domestic drill which can be easily used by all and sundries. In fact, the imported item is very heavy and is used with electrical connection and has a hammer drive which requires an expert to use this tool. Besides, this drill is not a general-purpose drill but is used only for construction works, industrial activities and shipbuilding. This is also evident from the catalogue and value-wise also I am quite convinced. Normally a drill of this type is not used in household. This is capital gods for carpenters and industrial workers. In fact, economically speaking, this is Intermediary Capital Goods. This position has been adequately clarified and confirmed in the policy itself. The drill of Consumer Goods Type, viz. Drill upto 10mm have been specifically taken out and given the facility of import under SIL. This evidently implies that no such restriction is envisaged in respect of Drill above 10mm. The imported Hammer Drill being of 13mm is therefore not Consumer Goods attracting the mischief of para 156. I accept the appeal for the added reasons that the ITC (HS) classification of Export and Import items published by the Ministry of Commerce (25-3-96) states that "Drill of all kinds are free item" (85.08-10-00). This complies with then implied fact that the drill above 10MM are not consumer goods and therefore, not restricted. Consequential relief should be granted to the appellant".