Suspended REP licence imports were held invalid where shipment occurred after suspension, exposing goods to confiscation and remand.

Import of goods shipped after suspension of the REP licences was treated as invalid because the licences were no longer operative on the shipment date. Earlier authorities were distinguished on the basis that they concerned imports against licences that remained valid at the relevant time and did not involve prior suspension. The import was therefore held liable to confiscation, the impugned order was set aside in favour of Revenue, and the questions of redemption fine and penalty were remanded to the jurisdictional Commissioner for fresh decision.

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Issues: Whether goods imported after suspension of the REP licences were validly imported and liable to confiscation.

Analysis: The licences stood suspended before the date of shipment. The earlier decisions relied upon for sustaining the import were distinguished because they concerned imports against licences that were valid on the date of import and did not involve prior suspension. Since the goods were shipped after the suspension of the licences, the import could not be treated as valid.

Conclusion: The import was invalid and the impugned order was set aside in favour of Revenue. The issue of redemption fine and penalty was remanded for fresh decision by the jurisdictional Commissioner.

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