[Order per : V.K. Agrawal, Member (T)]. - The issue involved in these appeals filed by Revenue is whether the respondents M/s. National Trading Co. has imported watch case in complete condition so as to attract requirement of special licence for its import?
2. Shri R.K. Sharma, learned SDR, submitted that watch cases fall under negative list for the purpose of import. However, parts of watch cases are allowed free import. The respondents had imported, ‘watch cases with bracelet and without back’ under 5 Bills of Entries and, ‘back’ for watch case under another Bill of Entry which were all filed on the same day which shows that both watch cases without back and back were imported on the same day just to defeat the requirement of special licence. Shri Sharma further submitted that ring, which is required to fasten the watch case was not imported by the respondents and ring does not constitute a component part of the watch case. He finally submitted that as the respondents have imported watch case with back, though under different Bill of Entries filed on the same day, it has to be treated that they had imported complete watch case, the import of which can be made only on the basis of special licence. Accordingly they were liable for confiscation and the redemption fine and personal penalty imposed by the Assistant Commissioner were not in excess which should be upheld by the Tribunal. Reliance was placed on the decision in the case of Sharp Business v. C.C. - and Sigma Electronics v. C.C., Jaipur - .
3. Shri K.G. Sheth, learned Advocate countered the arguments by submitting that the ring is essential part of the watch case as without ring the watch movement cannot be fitted properly inside the watch case and because of their moving from one side to other in the watch case, watch will not show the accurate time. He contended that they had not imported complete watch case and as they had only imported parts of watch cases their products are not liable for confiscation at all.
4. We have considered the submissions of both the sides. It is not in dispute that only watch case without back and watch backs were imported by the respondents and rings were not imported. We agree with the learned Advocate that without ring watch case is not complete as the watch movement cannot be properly fitted in the watch case. As only parts of watch cases have been imported by the respondents the import of which is allowed free the confiscation and consequential redemption fine and penalty is not legal. The decision in the case of Sigma Electronics does not reveal whether the rings were imported by the appellants therein or not. In view of this we do not find any merit in the appeals filed by the Revenue and reject all the 6 appeals filed by the Revenue.
Comments