V.P. Gulati, Member (T)

1. This appeal is against the order of the Collector of Customs, Madras. The point that falls for consideration in the appeal is whether Hypodermic Syringes imported by the appellants were allowed for import against Serial No. 48(b) of List 6 of Appendix 6, Import-Export Policy, 1985-88. The lower authority has held that as these Syringes are Hypodermic which fall under Serial No. 521 of Appendix 3, Part A of Import-Export Policy, 1985-88, the import cannot be made without a valid import licence. The Collector in his order has referred to his earlier adjudication order in respect of the very same party under which the goods had been confiscated and taking into consideration that decision, he confiscated the disposable syringes imported by the appellants valued at Rs. 2,15,623/- and allowed the goods to be redeemed on payment of fine of Rs. 2,00,000/-. A penalty of Rs. 10,000/- was also levied.

2. Shri Patel, the learned Advocate appearing for the appellants pleaded that he is aware that in similar case this Bench of the Tribunal in Order No. 554/1989 in the case of M/s. Ishwamurti and M/s. Equipment Sales Corporation v. Collector of Customs, Madras has held against the appellants and the matter is covered by this order. He has pleaded that there is a clarification from the Central Board of Excise and Customs, New Delhi which has been sent to all the Collectorates, under which disposable Syringes imported and pending clearances were allowed to be cleared under OGL, vide Boards letter F. No. 478/63/87-Cus-VII dated 02 December, 1987 and their clarification was not brought to the notice of the Tribunal. The Board has stated in the said letter as under:

"I am directed to enclose herewith a copy of letter No. DO 48/1503/85-86/IPC/4277 dated 29th October, 1987 received from the Office of the Chief Controller of Imports and Exports, on the above subject for your information and necessary action.

You may allow clearance of pending consignments of disposable syringes under OGL."

The Clarification of the JCCI & E, New Delhi referred to above is reproduced below:

"It was clarified at the meeting that disposable syringes for dental application can also be used for other medical purpose.

In the light of above, the question of transferring all types of disposable syringes to OGL is under consideration."

The learned Counsel pleaded that in view of the instructions inasmuch as the imports were made before 15-1-1987, it should be taken to be covered by this instructions and the order of confiscation should be set aside. He has pleaded that the Single Member Bench of the West Regional Bench of the Tribunal in the case of Trident Agencies v. Collector of Customs reported in 1989 (45) ELT 116 (Tribunal) held as under:-

"Above all, the subsequent conduct of the Customs House clearing identical goods without raising any objection, again support the importer's contention that the goods imported are not drugs and were not canalised during the Policy A.M. 83. Having regard to the course of conduct of the customs, even if the goods are treated as canalised there was no justification to impose any fine."

He has pleaded that the Special Bench of the Tribunal in the case of Navinchandra Premji & Company v. Collector of Customs reported in MANU/CE/0312/1989 : 1989 (43) ELT 644 (Tribunal) took note of the fact that the goods were subsequently allowed for import under OGL and reduced the redemption fine. The said findings of the Special Bench is reproduced below:

However, after taking all the facts and circumstances into account as the imported goods are nothing but needles used for the purpose of injecting drugs and subsequently these very items are specifically inserted under Serial No. 50, List VI, Appendix VI of OGL, under ITC Policy 1988-91, we strongly feel that this is a case where lenient view has to be taken regarding redemption fine. Accordingly, we reduce the redemption fine to Rs. 1,00,000/- as against Rs. 1,50,000/-.

He has