Crystallised import transaction before policy change defeats confiscation and penalty under customs law.

Part payment made against a proforma invoice before import restrictions were imposed was treated as evidence of concrete steps toward a concluded import arrangement, so the transaction was regarded as crystallised before the policy change. The absence of a formal written contract or letter of credit was not treated as decisive, because a concluded agreement may be inferred from surrounding circumstances. The note applies earlier precedent on bona fide import and crystallised transactions before a restriction, indicating that confiscation, redemption fine, and penalty under the Customs Act were not sustainable on these facts.

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Issues: Whether part payment made against a proforma invoice before the imposition of import restrictions constituted concrete steps and a crystallised agreement for import, so as to render confiscation, redemption fine, and penalty unsustainable under Section 111(d) of the Customs Act, 1962.

Analysis: The proforma invoice pre-dated the restriction, and part payment was remitted before the notification imposing the restriction. On these facts, the import arrangement was held to have progressed beyond a mere proposal and to have crystallised before the policy change. The absence of a formal written contract or letter of credit was not treated as decisive, because a concluded agreement may be inferred from surrounding circumstances. The earlier precedent on bona fide import and crystallised transactions before a policy change was applied.

Conclusion: The issue was decided in favour of the appellant. The import was treated as having been initiated by concrete steps before the restriction, and the redemption fine and penalty were set aside.

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