Import licence policy reference controls entitlement, and later policy alone does not make compliant imports unauthorised.

An import licence that expressly incorporates earlier policy provisions governs the importer's entitlement and conditions, even if the goods are imported during the currency of a later policy. On that reasoning, defective CRGO sheets imported under REP licences were not treated as unauthorised merely because the later import policy had come into force. The same principle was applied to conclude that confiscation under Section 111(d) of the Customs Act, 1962 was not sustainable where the imports remained within the licence limits. The confiscation and penalty were therefore set aside and clearance of the goods was permitted.

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Issues: Whether imports of defective CRGO sheets made under REP licences, which expressly referred to earlier import policy provisions, could be treated as unauthorised merely because the imports were effected during the currency of a later import policy, and whether confiscation under Section 111(d) of the Customs Act, 1962 was sustainable.

Analysis: The licences contained specific references making the earlier policy provisions applicable. Where the licence itself specifies the governing policy, that specification controls the import entitlement and the associated restrictions and conditions. As the facts were identical to an earlier decided case, the same legal position applied and the later policy did not by itself render the import unauthorised.

Conclusion: The imports were held to be covered by the licences and not liable to be treated as prohibited imports on the reasoning adopted. The confiscation and penalty were set aside and clearance of the goods was permitted within the applicable limits.

Ratio Decidendi: A specific policy reference incorporated into an import licence governs the import entitlement notwithstanding a later policy in force at the time of import, provided the imports remain within the licence limits.

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