Import classification of rubber stoppers turned on binding licensing clarification, defeating the department's contrary view.

Rubber stoppers imported for closing bottles were treated as classifiable under the importer's claimed heading as "plugs" under Heading 4016.93, rather than the residuary heading adopted by the department. The licensing clarification under the Import Policy 1992-97 was treated as binding on the customs department, and the circular stating that small rubber bottle stoppers were freely importable without a licence was followed. On that basis, the contrary departmental classification was rejected, and the confiscation and penalty could not be sustained.

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Issues: Whether rubber stoppers imported for closing bottles were classifiable as "plugs" eligible for import policy treatment under Heading 4016.93, and whether the licensing authority's circular bound the department.

Analysis: The goods were examined in the context of the Import Policy 1992-97 and the classification dispute between the specific heading claimed by the importer and the residuary "other" heading adopted by the department. The Commissioner (Appeals) relied on the clarification issued by the Director General of Foreign Trade that rubber stoppers of small bottles were freely importable without a licence. The circular issued by the licensing authority was treated as binding on the department under the policy, and no ground was found to disregard it.

Conclusion: The imported goods were accepted as falling under the importer's claimed heading, the departmental view was rejected, and the order of confiscation and penalty did not survive.

Final Conclusion: The departmental challenge failed, and the importer's relief was sustained.

Ratio Decidendi: A clarification issued by the licensing authority under the import policy is binding on the customs department, and where such clarification supports the importer's classification, the departmental contrary view cannot be sustained.

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