Benefit of doubt under import licence scheme upheld where Revenue failed to prove goods fell in restricted description.

White cardboard imported under value based advance licences was treated as importable under the DEEC scheme, because the Tribunal followed its earlier identical ruling and found the DGFT clarification insufficient to defeat the licence entitlement. The Tribunal noted that expert opinion and the chemist's report had already been considered, and that the Revenue had not established that the goods fell within the sensitive or restricted description. Applying the benefit of doubt to the assessee, the objection to clearance under Customs Notification No. 79/95 was rejected and the order permitting clearance was upheld.

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Issues: Whether white cardboard imported under value based advance licences issued for import of cardboard other than ivory board was importable under the DEEC scheme and entitled to clearance under Customs Notification No. 79/95.

Analysis: The Tribunal followed its earlier decision in an identical matter and held that the DGFT clarification was not sufficient to displace the importer's entitlement under the licences. The earlier decision had considered the material on record, including expert opinion and chemist's report, and had applied the principle that benefit of doubt must go to the assessee where the Revenue failed to establish that the goods fell within the sensitive list. On that basis, the Tribunal found no reason to take a different view in the present case.

Conclusion: The goods were held importable under the DEEC scheme and the departmental objection was rejected.

Final Conclusion: The impugned order allowing clearance of the goods was upheld and the department's appeal failed.

Ratio Decidendi: Where an earlier identical decision has held that the Revenue has not established that the imported goods fall within the restricted description, the importer is entitled to the benefit of doubt and clearance under the applicable licence scheme.

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