Free-export classification of finished leather prevails over general restrictive entries, defeating confiscation and penalty.

Exported leather goods were treated as falling within the specific free-export description of "finished leather, all kinds" under ITC (HS) Code 4102, rather than the more general restricted category of lining leather. The commentary rejects reliance on a deleted EXIM Policy paragraph and on a broader hides-and-skins entry where the specific description governed the goods. As the record did not show any breach of the conditions attached to the free-export entry, export without licence was considered permissible on the relevant date, leaving no basis for confiscation or penalty.

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Issues: Whether the exported leather goods were classifiable as freely exportable "finished leather, all kinds" or as restricted lining leather requiring a licence, and whether confiscation and penalty were therefore sustainable.

Analysis: The goods were found to conform to the description "finished leather, all kinds" under ITC (HS) Code 4102. The reliance on the deleted paragraph of the EXIM Policy and on the general entry relating to hides and skins was rejected because the specific description for finished leather governed the goods in question. The record also did not show non-fulfilment of the conditions attached to the free export entry. In these circumstances, export without licence was held to be in order on the relevant date, leaving no basis for confiscation or penalty.

Conclusion: The export was held to be freely permissible, and the order of confiscation and penalty was set aside.

Final Conclusion: The appeal failed, and the order in favour of the exporter was affirmed.

Ratio Decidendi: Where goods clearly fall within a specific free-export description and satisfy the attached conditions, a more general restrictive entry cannot be invoked to sustain confiscation or penalty.

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