Bill of Entry date governs import licence requirements for second-hand capital goods, defeating confiscation and penalty.

Importability of second-hand capital goods was determined by the date of filing the Bill of Entry, not the Bill of Lading. On that date, the applicable EXIM policy had already removed the age-based restriction on machinery, so the shuttleless looms did not require a licence. As licence-free import was permissible on the relevant date, confiscation and penalty were not sustainable and were set aside.

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Issues: Whether the import of second hand capital goods, namely shuttleless looms, required a licence so as to justify confiscation and penalty.

Analysis: The importers had sought clarification from the DGFT on the applicability of licensing restrictions. The clarification indicated that, in the facts of the case, the date of filing the Bill of Entry was the relevant cut-off for determining importability, and not the Bill of Lading. Since the new EXIM policy had lifted the restriction on the age of machinery by the relevant date, the import was treated as not requiring a licence.

Conclusion: The licence was not required for the import of the shuttleless looms; confiscation and penalty were set aside, and the appeal was allowed.

Final Conclusion: The import was held to be permissible without a licence on the relevant date, resulting in the setting aside of the confiscation and penalty.

Ratio Decidendi: For determining importability under the applicable policy, the relevant date was the date of filing the Bill of Entry, and where no licence was required on that date, confiscation and penalty could not be sustained.

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