COMMNR. OF CUSTOMS, NEW DELHI vs M/S. PHOENIX INTERNATIONAL LTD.

The Supreme Court, in interpreting Section 130E of the Customs Act, 1962, held that the importation of shoe components by M/s. Phoenix Industries Ltd. could not be classified as separate components but rather as a complete shoe in semi knocked down (SKD) condition. The Court found that the importers had mis-declared the goods, as they were intended for assembly into a complete product without the necessary specific import license, violating the EXIM Policy 1992-97. The appeals by the Department were allowed, overturning the Tribunal's decision.