Conditional import restrictions under customs law extend to prohibited goods where environmental registration is absent.

Import of copper scrap described as "druid" was treated as subject to the Foreign Trade Policy and the environmental regime governing hazardous waste, so free import for jobbing was not available unless the prescribed conditions were met. The record showed that the goods included PVC/plastic insulated copper cable scrap, and the importer lacked registration with the environmental authority. On that basis, the court held that Section 111(d) of the Customs Act, 1962 covers not only absolute prohibitions but also restrictions and conditional prohibitions, and non-fulfilment of those conditions renders the goods prohibited. Confiscation was therefore sustained and the Tribunal's contrary view was found erroneous.

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Issues: Whether the imported copper scrap described as "druid" could be treated as freely importable for jobbing under the Foreign Trade Policy and Notification No. 32/97 despite the absence of registration with the environmental authority, and whether confiscation under Section 111(d) of the Customs Act, 1962 was sustainable.

Analysis: The import scheme for job work permits restricted goods to be brought in without a licence, but only within the terms of the governing notification and the environmental regime applicable to hazardous waste. The record showed that the goods were not merely lead-covered scrap but also included PVC/plastic insulated copper cable scrap falling within "druid", that the importer was not registered with the Ministry of Environment and Forests, and that the relevant hazardous-waste controls required compliance before import. The expression "prohibition" in Section 111(d) of the Customs Act, 1962 was treated as wide enough to include restrictions and conditional prohibitions; if the prescribed conditions are not fulfilled, the goods answer the description of prohibited goods.

Conclusion: Confiscation under Section 111(d) of the Customs Act, 1962 was sustained, and the Tribunal's contrary view was held to be erroneous. The appeal succeeded in favour of the Revenue.

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