Import licence interchangeability protected the goods; confiscation and redemption fine failed after a new classification ground was raised.

Imported goods were held to fall within the existing import licence by applying the policy of interchangeability between quota categories for studio electric and projector bulbs, and cinema machinery and parts. The authorities' attempt to sustain confiscation on a residuary classification different from the basis in the show-cause notice was unsustainable because the importer was not given an opportunity to meet that new ground. On the proper reading of the import policy, the licence covered the goods imported, and the confiscation order and redemption fine were set aside.

---

---

Issues: Whether the imported goods could be treated as covered by the existing import licence by applying the principle of interchangeability, and whether the orders of confiscation and redemption fine were sustainable when the show-cause notice proceeded on a different classification from the one ultimately relied upon by the revisional authority.

Analysis: The import policy for the relevant period permitted interchangeability between the quota licences for studio electric and projector bulbs and for cinema machinery and parts thereof. The notice issued to the importer proceeded on the footing that the goods required a specific licence under one classification, while the revisional authority later attempted to classify them under a different residuary entry. The importer was not given an opportunity to meet that new basis. On the proper reading of the policy, the interchangeable licence category covered the goods imported, and the contrary view taken by the authorities was held to be unsustainable.

Conclusion: The confiscation order and the alternative redemption fine were set aside, and the import was held to be covered by the licence by virtue of interchangeability.

---