EPCG licence port specification defeats penalty where import clearance matched the authorised airport

Penalty was found unsustainable where a vehicle imported under an EPCG licence was cleared at Mumbai Airport, the very port specified in the licence. The restriction in the import notification concerning new vehicles through designated ports did not justify penal action on these facts, because the importer acted in accordance with the authorised port of clearance. The appeal seeking penalty was therefore rejected.

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Issues: Whether penalty was sustainable when the imported vehicle was cleared at the port shown in the DGFT licence notwithstanding the restriction in the notification concerning import of new vehicles through specified ports.

Analysis: The import had been made against an EPCG licence that specifically mentioned Mumbai Airport as the port of clearance. In that situation, the importer could not be faulted for clearing the vehicle at the very port authorised in the licence. The objection based on the notification did not justify penal action against the importer on these facts.

Conclusion: The appeal seeking imposition of penalty failed and was rejected.

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