Pre-notification contracts shield imports from later restrictions, defeating confiscation, value enhancement, fine and penalty here.

Import restrictions introduced by a later notification do not apply where artificial marble slabs were already covered by a concluded contract, advance payment, and shipment before the notification took effect. The commentary applies the principle that licensing restrictions attach only to goods contracted and paid for after the restrictive notification begins, relying on earlier High Court authority on pre-notification transactions. On that basis, confiscation, enhancement of assessable value, redemption fine and penalty were considered unsustainable.

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Issues: Whether the import of artificial marble slabs was protected by the pre-existing contract and advance payment made before the import restriction notification came into force, and whether the confiscation, enhancement of value, fine and penalty could therefore be sustained.

Analysis: The goods were contracted for, paid for in advance, and shipped before the notification prescribing a threshold for free importability of artificial marble slabs became effective. On the facts, the import fell within the principle that licensing restrictions are attracted only to goods contracted and paid for after the restrictive notification comes into force. The decision relied on the earlier High Court ruling applying the same principle to imports preceded by advance payment and prior contractual arrangements.

Conclusion: The import was not hit by the notification-based restriction, and the confiscation, enhancement of assessable value, redemption fine and penalty could not be sustained.

Final Conclusion: The impugned order was set aside and the appeal was allowed.

Ratio Decidendi: Import restrictions introduced by a later notification do not apply to goods already covered by a concluded contract and advance payment made before the notification took effect.

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