Strict construction of fiscal restrictions barred penalty for stainless steel strip imports not covered by the operative entry.

Paragraph 85(1)(i)(c) of the Import Trade Control Hand Book, 1969 was construed strictly, and the operative wording at the relevant time did not cover stainless steel strips. The later erratum could not retrospectively validate a penalty where the import arrangement had already been entered into before the correction was issued. On that construction, the goods were not prohibited on the relevant date and the penalty could not be sustained. The text applies the settled rule that fiscal restrictions must be interpreted narrowly and any ambiguity must be resolved in favour of the importer.

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Issues: Whether Paragraph 85(1)(i)(c) of the Import Trade Control Hand Book, 1969 prohibited the import of stainless steel strips in 1969, and whether the later erratum could validate the penalty imposed for such import.

Analysis: The earlier versions of the entry expressly dealt with stainless steel in different forms, and the 1969 wording omitted strips from the prohibited items. The subsequent erratum specifically added strips, showing that strips were not covered until the correction was issued. As the respondent had already entered into the import arrangement before the erratum, the goods were not unauthorised on the relevant date. In construing the restriction, the Court applied the settled principle that taxing statutes and fiscal restrictions must be construed strictly and any doubt must go to the assessee.

Conclusion: Paragraph 85, as it stood at the relevant time, did not prohibit the import of stainless steel strips, and the penalty could not be sustained. The decision was in favour of the assessee.

Final Conclusion: The import was not within the prohibited category on the relevant date, so the penalty order failed and the appeal did not succeed.

Ratio Decidendi: Fiscal restrictions must be construed strictly, and a later corrective erratum cannot retrospectively bring within prohibition goods that were not covered by the operative entry when the transaction occurred.

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