Import classification of polytetrafluoroethylene resin dispersion: show cause notice quashed after policy clarification covered the product under open general licence.

Imported polytetrafluoroethylene resin dispersion was examined on the question whether it should be treated as a plastic material covered by the relevant import policy or as a paint. A clarification dated 24 June 1985 stated that import of polytetrafluoroethylene, pigmented or non-pigmented, fell under open general licence under the specified policy entry, subject to stated conditions. On that basis, the show cause notice issued in relation to the consignment was found unjustified and was quashed and set aside.

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Issues: Whether the imported polytetrafluoroethylene resin dispersion was liable to detention and whether the show cause notice issued in relation to the import was sustainable.

Analysis: The dispute turned on the classification of the product as a plastic material or a paint. The relevant clarification dated 24 June 1985 stated that import of polytetrafluoroethylene, pigmented or non-pigmented, was covered under open general licence under the specified policy entry, subject to the stated conditions. In that view, the show cause notice issued in relation to the consignment lacked justification.

Conclusion: The show cause notice was quashed and set aside, and the petition succeeded.

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