Binding import clarification controls customs action when an importer relies on the competent authority's final interpretation.

An import policy that makes the competent licensing authority's interpretation final binds customs authorities, so a clarification issued under that policy cannot be ignored by a contrary customs view. Where an importer sought and obtained a clarification permitting extension of the letter of credit and imported goods in reliance on it, the import could not later be treated as unauthorised on the basis of a different interpretation by customs. The clarification was sufficient to resolve the dispute, and the confiscation order could not be sustained. The confiscation and appellate orders were set aside, and relief was granted to the importer.

---

---

Issues: Whether the clarification issued by the Chief Controller of Imports and Exports under the import policy was binding on customs authorities and whether the import of the second-hand machine could therefore be treated as unauthorised and confiscated.

Analysis: The import policy vested the power of interpretation and clarification in the Chief Controller of Imports and Exports, and the policy expressly made that interpretation final and overriding any contrary view of other authorities. The importer had sought and obtained a clarification permitting extension of the letter of credit, acted upon that clarification, and imported the machine in reliance on it. In those circumstances, the subsequent view of customs that the import was unauthorised could not prevail over the binding clarification issued by the competent authority. The Court found it unnecessary to decide the case on promissory estoppel or the saving clauses of the policies, since the clarification itself was sufficient to resolve the dispute.

Conclusion: The clarification was binding on the customs authorities, and the confiscation order could not be sustained. The petition succeeded and the import was held not to be illegal.

Final Conclusion: The impugned confiscation and appellate orders were set aside, and the importer was entitled to relief.

Ratio Decidendi: Where an import policy makes the interpretation of the competent licensing authority final, customs authorities are bound by that clarification when the importer has acted on it in good faith.

---