Functional classification of imported cartridges prevails over nomenclature; no misdeclaration where goods match the policy description.

Imported cartridges described as .30 Mauser were examined as 7.62x25 win-pistol cartridges, but the Tribunal accepted that .30 bore in the British system corresponds to 7.62 in metric terms. Applying the functional test of whether the cartridges could be chambered and fired from a .30 Mauser pistol, it held that the goods fell within Para 2.34 of the Handbook of Procedures under the Foreign Trade Policy, 2004-09. The Tribunal found no misdeclaration because the specifications matched the policy description, and therefore confiscation and penalty were not sustainable. The Commissioner (Appeals) order permitting the import was upheld and the Revenue's challenge failed.

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Issues: Whether the imported cartridges described as .30 Mauser cartridges were misdeclared when examination showed 7.62x25 win-pistol cartridges, and whether the import was covered by Para 2.34 of the Handbook of Procedures (Vol.-I), Foreign Trade Policy, 2004-09.

Analysis: The Tribunal accepted the respondent's explanation that .30 bore in the British system corresponds to 7.62 in the metric system. Relying on its earlier view that the decisive question is whether the cartridges can be chambered and fired from a .30 Mauser pistol, the Tribunal held that the examined goods were within the policy description. Since the specifications were consistent with the policy, the charge of misdeclaration was not sustainable and confiscation and penalty were not justified.

Conclusion: The import was held to be covered by Para 2.34 and there was no misdeclaration; the Revenue's challenge failed.

Final Conclusion: The order of the Commissioner (Appeals) allowing the import was upheld and the Revenue's appeal was rejected.

Ratio Decidendi: Where the imported ammunition is commercially and functionally within the policy description, a difference in nomenclature or metric conversion does not constitute misdeclaration, and confiscation or penalty cannot be sustained.

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