Jobbing import under a revenue notification need not require a separate licence where goods are restricted but not prohibited.

Copper scrap imported for jobbing under Notification No. 32/97, where the goods were restricted but not prohibited under the import policy, did not require a separate import licence, certificate or permission. The relevant policy and notification permitted such duty-free import for job work and re-export in accordance with the prescribed conditions, so confiscation under Section 111(d) of the Customs Act could not be sustained on that basis. The confiscation under Section 111(m) was not disputed, and the question of fine and penalty was therefore sent back for fresh determination on remand.

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Issues: Whether copper scrap 'Druid' imported for jobbing under Notification No. 32/97 could be imported without a licence, certificate or permission, and whether confiscation under Section 111(d) of the Customs Act, 1962 was sustainable.

Analysis: Notification No. 32/97 permits duty-free import of specified goods for job work and re-export, subject to the notification conditions. Para 4.2.7 of the Foreign Trade Policy, 2004-09 provides that goods, including those restricted in ITC (HS) but not prohibited, may be permitted for jobbing without a licence, certificate or permission in terms of the relevant notification issued by the Department of Revenue. The imported item was treated as restricted rather than prohibited, and the statutory scheme did not require a separate import licence or certificate for the purpose of jobbing under the notification. On that footing, confiscation under Section 111(d) could not be sustained. As the confiscation under Section 111(m) was not challenged, the matter on fine and penalty required reconsideration.

Conclusion: Confiscation of the goods under Section 111(d) was set aside, and the matter was remanded to the Commissioner (Appeals) for redetermination of fine and penalty.

Final Conclusion: The importer succeeded on the legality of confiscation under Section 111(d), but the consequential quantification of fine and penalty was left for fresh adjudication on remand.

Ratio Decidendi: Goods imported for jobbing under a valid revenue notification, if restricted but not prohibited under the import policy, do not require a separate licence, certificate or permission, and confiscation under the provision relating to prohibited or unauthorised imports cannot be sustained on that basis.

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