Per: G.R. Sharma: M/s Indian Communication Network have filed this appeal against the order of Additional Collector. The Addl. Collector in his order had held:

"I order that goods described as "ribbons' in the Bill of Entry, while in invoice as "Pancakes', valued at Rs. 4,18,910/- be confiscated under Section 111 (d) of the Customs Act. However, I permit the importer to redeem the goods on payment of Rs. 2,00,000/- (Rupees two lakhs only). I impose a personal penalty of Rs. 10,000/- on the importer under Section 112 (a) of the Customs Act."

2. Briefly stated that facts of the case are that the appellant filed Bill of Entry no. 211000 dated 27.2.90 seeking clearance of the goods described as ribbons for electronic typewriter under OGL Appendix 6 (1). On examination, the goods were found to be ribbons for typewriters. The department was of the view that typewriter ribbons are restricted items for import as they were covered by S.No. 1 18 of Appendix 2 (b) of the Import and Export Policy 1988-91. It was also alleged that the goods were not permitted under OGL and therefore the import was considered as invalid as no licence for import thereof was produced. Accordingly the goods were seized and a show cause notice was issued to the appellant that the import was without a valid import licence and that the goods were liable to confiscation and that the importers were liable to a penalty.

3. Shri N.C. Sogani. the ld. Consultant appearing for the appellant submitted that the Dy. Chief Controller of Import and Exports vide his letter dated 26.8.85 had clarified that ribbon/ribbon cartridges were covered by S.No. 1 of Appendix of the Import and Export Policy 1985-88 (Vol. I) and that the Import can be made by the Actual Users (Industrial) subject to the conditions laid down. The ld. Consultant also referred to Public Notice no. 44/ITC (PN)/85-88 dated 18.10.85 in which it was stated:

"Alter the existing Entry no. 46 the following new entry shall be added: "47. Consumables of electronic typewriters, the following:

(i) Prim cartridge

(ii) Ribbon cartridge

(iii) Correction tape."

that the Industrial Adviser in the office of the Director General. Technical Development (DGTD) under their letter dated 24.6.85 had intimated to the appellants that the matter in regard to inclusion of print cartridges, ribbon cartridge and correction tape in the stock and sale list of Import Policy has been considered by their office and that their recommendations alongwith the letter of the appellant in original has been sent to the office CCI&E for necessary action: that on the strength of this recommendation the CCI&E had included the item in Appendix 6 List 8 Part 111; (hat the clarification given by the CCI&E and the inclusion of the items under Appendix 6 during the Import and Export Policy period 1985-88 should be applicable to similar imports during the policy period 1988-91. It was argued at length by the ld. Consultant that when the competent authority (CCI&E) clarified during (he Import and Export Policy period 1985-88 that ribbon for electronic typewriters could be imported under OGL when typewriter ribbons were Appendix 2 (b) (vide S.No. 100), why the same clarification should not apply to the Import and Export Policy for the period 1988-91; that Entry al S.No. 12 (ii) of List 8 Pt. II or Appendix 6 of the Policy for the period 1988-91 clearly shows that ribbons for electronic typewriters could be imported under OGL. Therefore the import of ribbons for electronic typewriters under OGL by the appellant was legal and the order confiscating the goods is not valid. The ld. consultant therefore prayed that the impugned order may be set aside and consequential relief may be provided to the appellant.

4. Shri K.N. Gupta, the Ld. SDR appeared for the Revenue and submitted ail the clarifications referred to and relied upon by the appellants pertain to the Policy for the period 1985-88 and therefore were applicable to the policy for the period 1988-91; that S.No