Advocated By :   Shri O.P. Chowdhury, Advocate, for the Appellant.

Shri J.M. Kennedy, JDR, for the Respondent.

[Order per : Dr. S.N. Busi, Member (T)]. - The issue in this appeal relates to production of Special Import Licence in respect of Sound Cards and Internal Card Modems imported in June, 1996.

2. Shri O.P. Chowdhury, ld. adv. submits that that the Sound Cards are solely for use with the computer and hence classifiable under the CTA sub-heading 8473.30 and the Internal Card Modems are appropriately classifiable under CTA sub-heading 8517.50. Hence, the said goods being outside the scope of Sl. No. 27 of Appendix XXXV of the Handbook of Procedures, 1992-97 (Vol. I), require no Special Import Licence.

3. Shri J.M. Kennedy, ld. JDR appearing for the Revenue submits that the impugned goods being populated PCBs would require Special Import Licence in terms of IPC Circular No. 59/92-97 dated 17-10-95 where the populated PCBs are appearing at Sl. No. 27. He, therefore, argues that the order impugned is correct in law.

4. We have heard both the sides and we have also perused the entry at Sl. No. 27 of Appendix XXXV of the Handbook of Procedures, 1992-97 (Vol. I). On a careful consideration, we find that both the impugned goods merit to be classified as populated PCBs and as such fell under CTA heading 84.71 as parts of machine. In view thereof, importation of these goods require Special Import Licence which the appellant failed to produce before the Customs.

5. In view of the above, we are convinced that there is no ground to interfere with the order impugned. However, having regard to the facts and circumstances of the case, we reduce the redemption fine from Rs. 25,000/- to Rs. 10,000/- and penalty from Rs. 5,000/- to Rs. 1,000/-.

6. In the result, the appeal is disposed of in the above terms with consequential relief to the appellants.