DFIA import of restricted goods: no separate permit can be added unless the policy or authorisation expressly requires it.

Boric acid imported for non-insecticidal use under a transferable DFIA was held not to require a separate import permit from the Central Insecticide Board and Registration Committee at clearance, because the policy allowed restricted items to be imported under DFIA and the authorisation itself imposed no further permit condition. Revenue decisions were distinguished on the basis that they did not concern DFIA imports. In the absence of any policy violation, confiscation, redemption fine and penalty could not be sustained, and the goods were directed to be released.

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Issues: Whether boric acid imported for non-insecticidal use under a transferable DFIA required a separate import permit from the Central Insecticide Board and Registration Committee, and whether the goods were liable to confiscation, redemption fine and penalty for want of such permit.

Analysis: Boric acid was treated in the import policy as freely importable but subject to a restriction of obtaining an import permit for non-insecticidal use. The relevant policy provision stated that import of restricted items shall be allowed under Advance Authorisation or DFIA. Since the goods were imported against a specific DFIA issued by DGFT, and the DFIA itself did not stipulate any further permit condition, no separate permit was necessary at the stage of clearance. The cited decisions relied upon by the Revenue were distinguished because they did not concern import under DFIA. In the absence of any violation, the confiscation and penalty provisions could not be invoked.

Conclusion: The requirement of a separate import permit did not apply to the DFIA import, and the confiscation, redemption fine and penalty were unsustainable. The appeal succeeded and the goods were directed to be released.

Ratio Decidendi: Where a restricted item is imported under a valid DFIA and the policy permits such import, a further permit condition cannot be superimposed to sustain confiscation or penalty unless the DFIA or governing policy expressly requires it.

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