JUDGMENT

S.C. Agrawal, J.-The appellant is a manufacturer and exporter of Lightening Arrestors which are supplied to electricity boards, railways and other public sector undertakings. The appellant was awarded a Deemed Export Order (Contract) by the Railway Board for supply of 937 numbers of Metal Oxide Gapless Type Lightening Arrestors (hereinafter referred as Lightening Arrestors ). The said contract was entered into under an International Development Scheme. For the manufacture of Lightening Arrestors, Porcelain housings (H.T. Insulators) are required and these insulators are produced in a ceramic kilns. Crystar (main and Gross) Beams made of Silicon Carbide are used for firing dry and hollow H.T. Porcelain bushings in the kilns and are fitted inside the kilns. The beams are susceptible to breakage and damage and have to be continuously replaced in the course of manufacture.

2. The appellant submitted an application before the Chief Controller of Imports and Exports on March 29, 1990 for issuance of a Special Import Licence to import various items required for the manufacture of Lightening Arrestors. The said items included Crystar Beams as Kiln Furniture. The Deputy Chief Co