Customs bond import of restricted goods may be reconsidered when a later DGFT clarification changes the licence position.

A later DGFT clarification that restricted High Speed Diesel Oil could be imported under customs bond in a private bonded warehouse without an import licence materially affected the legality of the import and the applicable trade policy conditions. Because the adjudicating authority had proceeded on the basis that import was impermissible without canalising agency routing, the Tribunal held that the matter required fresh consideration by the Commissioner. The case was remitted for reconsideration in accordance with law after taking the clarification into account and giving the importers a reasonable opportunity of hearing.

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Issues: Whether restricted High Speed Diesel Oil could be imported under customs bond in a private bonded warehouse without an import licence in view of the clarification issued by the Directorate General of Foreign Trade, and whether the adjudication required fresh consideration on that basis.

Analysis: The dispute turned on the effect of the subsequent clarification stating that restricted items such as HSD Oil could be imported under customs bond in a private bonded warehouse without an import licence. Since the adjudicating authority had proceeded on the footing that the import was impermissible without routing through the canalising agency, the later clarification was material to the legality of the import and to the conditions governing its warehousing and disposal. In these circumstances, the matter required re-examination by the Commissioner in the light of the clarification and the relevant trade policy framework, after giving the appellants a reasonable opportunity of hearing.

Conclusion: The matter was remitted for fresh decision in accordance with law after considering the DGFT clarification, and the appeals were allowed by way of remand.

Final Conclusion: The substantive controversy was not finally decided on merits by the Tribunal and was sent back for reconsideration after taking the later clarification into account.

Ratio Decidendi: Where a subsequent official clarification materially bearing on the importability of restricted goods under customs bond is produced, the adjudication should be reopened and decided afresh after giving the importer a fair hearing.

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