Commercial parlance test confirms white cement is distinct from ordinary portland cement, defeating customs prohibition treatment.

White cement and ordinary portland cement were treated as distinct commercial commodities under the governing import-control framework. Applying the commercial parlance test, and relying on the Imported Cement (Control) Order, Indian Standards Institution materials and the Government press note, the Court held that trade understanding, use and composition showed separate articles. On that basis, Customs could not treat white cement as a prohibited or canalised import of ordinary cement, and the contrary refusal to clear the goods was held unreasonable, illegal and without jurisdiction. The writ petition succeeded, and the confiscatory directions and adjudication were quashed.

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Issues: Whether white cement and ordinary portland cement are the same commercial commodity for the purpose of import control and customs action, and whether the refusal to clear the imported goods was lawful.

Analysis: The governing test was whether the goods were understood in commercial parlance as one or distinct commodities. The Court relied on the statutory definition in the Imported Cement (Control) Order, 1978, the material in the Indian Standards Institution publications, and the Government press note to hold that white cement and ordinary portland cement were treated separately in trade, use, and composition. On that basis, the Customs authorities' contrary view was held to be unreasonable and perverse, and the import of white cement could not be treated as a prohibited or canalised import of ordinary cement.

Conclusion: The issue was answered in favour of the petitioner. White cement was held to be a distinct commodity, the import was held to be valid, and the refusal to clear the goods and the consequential adjudication order were held illegal and without jurisdiction.

Final Conclusion: The writ petition succeeded, the adjudication proceedings and confiscatory directions were quashed, and clearance of the goods was ordered.

Ratio Decidendi: Where the statutory regime and accepted trade understanding treat two articles as distinct commercial commodities, Customs cannot override that position by relying on a contrary view unsupported by the governing control order and authoritative trade description.

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