Import restriction under policy fails where refrigerant is not shown to fall within the prohibited category.

Freon-503 refrigerant was found not to fall within the prohibited or restricted category under Para 156(c)(6) of the Import Policy because it was shown, on technical material from the Ministry of Environment and Forests, Ozone Cell, and IIT Delhi, not to be an HCFC or otherwise covered by the relevant prohibition. As a result, the import was not subject to the licence-based restriction relied on by the revenue, and the confiscation, fine, and penalty were unsustainable. The appeal succeeded, with the goods held clearable without the invoked import restriction.

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Issues: Whether the imported Freon-503 refrigerant was a prohibited or restricted item under Para 156(c)(6) of the relevant Import Policy so as to justify confiscation and penalty.

Analysis: The product was shown by the Ministry of Environment and Forests, Ozone Cell, and by IIT Delhi to be neither an HCFC nor a commodity covered by the prohibition on hydro chloro fluoro carbons. On that basis, the imported goods did not fall within the class of freon gases whose import required an ITC licence under the policy provision relied on by the department.

Conclusion: The goods were not hit by Para 156(c)(6) of the relevant Import Policy, and the confiscation, fine, and penalty could not be sustained in the assessee's case.

Final Conclusion: The appeal succeeded and the import was held to be clearable without the licence-based restriction invoked by the revenue.

Ratio Decidendi: A product cannot be treated as restricted for import purposes unless it is shown to fall squarely within the specific category prohibited by the governing import policy.

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