Concluded contract before restrictive import notification preserved benefit of the earlier regime for the assessee

A concluded contract with the foreign supplier was found to have been formed before the restrictive notification dated 07.04.2006, so the assessee retained the benefit of the earlier import regime. The invoice dated 30.03.2006, though described as proforma, was supported by same-day payment of US$38,000 and later adjustment for short supply, which were treated as sufficient evidence of a valid and binding commercial arrangement. The Tribunal's finding was neither absurd nor perverse, and no substantial question of law arose against that factual conclusion.

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Issues: Whether the respondent had entered into a concluded contract with the foreign supplier before the restrictive notification dated 07.04.2006 so as to retain the benefit of the earlier import regime.

Analysis: The determinative question was whether the commercial arrangement had crystallised before the change in policy. The invoice dated 30.03.2006, though described as a proforma invoice, was supported by payment of US$38,000 on the same date and subsequent adjustment for short supply. These facts were treated as sufficient to show a valid and binding contract concluded before 07.04.2006. The finding recorded by the Tribunal was neither absurd nor perverse and did not give rise to any substantial question of law.

Conclusion: The issue was answered in favour of the assessee, and the import was held to fall within the pre-restriction regime.

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