Advance licence amendment can regularise prior import clearance, so confiscation and penalty were unsustainable.

Clearance of imported goods already lying uncleared with customs could be regularised by a subsequent amendment to the advance licence under the foreign trade policy. Where the competent licensing authority issued the amended licence and the goods were cleared under that amended authorisation, the import was not unauthorised merely because the amendment was obtained after importation. On that basis, confiscation and penalty were held unsustainable, and the Revenue's challenge failed.

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Issues: Whether confiscation of imported goods and penalty were sustainable when the advance licence was subsequently amended by the competent authority and the goods were cleared under the amended licence.

Analysis: The clearance of goods already imported but not yet cleared from customs could be regularised against a subsequent authorisation under the relevant foreign trade policy. The amended licence was issued by the competent licensing authority, and the goods were in fact cleared under that amended licence. In such circumstances, the import could not be treated as unauthorised merely because the amendment was obtained after importation.

Conclusion: Confiscation and penalty were not sustainable, and the appeal by the Revenue failed.

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