Specific Exim Policy provision permits second-hand capital goods for actual users, overriding general import restriction and licence requirement.

Second-hand capital goods imported for aircraft handling were treated as permissible free imports by an actual user under paragraph 5.4 of the Exim Policy because that specific provision governed over the more general restriction relied on under paragraph 4.1 and the ITC(HS) classification. The equipment was described as second-hand capital goods used in a servicing industry, and the prescribed residual life requirement was satisfied. Applying the rule that a specific provision prevails over a general one, the import was regarded as not requiring a licence, and the departmental challenge failed.

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Issues: Whether the second-hand push back tractor imported for use in aircraft handling was capital goods eligible for free import by an actual user under paragraph 5.4 of the Exim Policy, notwithstanding the restriction said to arise from paragraph 4.1 and the ITC(HS) classification.

Analysis: The imported equipment was found to be second-hand capital goods used in a servicing industry for handling aircraft at the airport. Paragraph 5.4 of the Exim Policy specifically permitted import of second-hand capital goods having the prescribed residual life by actual users, and did not refer to the restricted-item treatment relied upon under paragraph 4.1. Applying the principle that a specific provision prevails over a general one, the later and specific paragraph 5.4 was held to govern the import. On that basis, the import was treated as permissible without licence.

Conclusion: The import was held to fall within paragraph 5.4 of the Exim Policy and was permissible without a licence, against the Revenue.

Final Conclusion: The departmental challenge failed because the specific policy provision governing second-hand capital goods for actual users controlled the result and the clearance of the goods was upheld.

Ratio Decidendi: Where a specific import policy provision expressly permits second-hand capital goods for actual users, that provision prevails over a more general restriction and governs the import.

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