Import documentation in a letter of authority holder's name remained valid under the pre-amendment procedure, defeating confiscation and penalty.

Import documentation in the name of a letter of authority holder was not prohibited under Para 229 of the Handbook of Procedures 1992-1997 before its amendment from 1 April 1994, because the earlier text did not require all import papers to be in the licence holder's name. The later restriction operated prospectively only. On that basis, the cloves import was treated as valid, and the consequential confiscation and penalty could not be sustained. The enhanced valuation, having been accepted by the importers, was not in dispute.

---

---

Issues: Whether import of cloves by a letter of authority holder was unauthorised under Para 229 of the Handbook of Procedures 1992-1997 and whether the confiscation and penalty could be sustained.

Analysis: Para 229, as it stood before amendment with effect from 1-4-1994, did not require that all import documents be in the name of the licence holder and did not prohibit documentation in the name of the letter of authority holder. The later amendment introduced that restriction prospectively. On that basis, the import was not hit by the pre-amendment procedure. Since the import was held to be valid, the consequential confiscation and penalty could not survive. The enhanced valuation was accepted by the importers and was not in dispute.

Conclusion: The import was held to be valid and unauthorised import, confiscation, and penalty were set aside in favour of the assessee.

---