Restricted import under REP licence required specific item description; generic wording could not authorise Sodium Saccharine import.

A restricted item under Import Policy 1985-88 could not be imported against an REP licence unless it was specifically described in the relevant Appendix 17 entry; a generic description such as "Electroplating Salts and Brightener" was insufficient, so import of Sodium Saccharine was unauthorised. On the quantum issue, the redemption fine and personal penalty were reduced because the adjudicating authority had not discussed the margin of profit, and the monetary consequences were moderated on reconsideration of the facts.

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Issues: (i) whether the REP licence covered import of Sodium Saccharine under the Import Policy 1985-88; (ii) whether the redemption fine and personal penalty required modification.

Issue (i): Whether the REP licence covered import of Sodium Saccharine under the Import Policy 1985-88.

Analysis: Sodium Saccharine was a restricted item under Appendix 2 Part B of the Import Policy 1985-88. Paragraph 5 of Appendix 17 barred import of such restricted items against an REP licence unless the item was specifically described in the relevant columns of Appendix 17. The item was not specifically named in Columns 4 or 5. A generic description such as 'Electroplating Salts and Brightener' was insufficient to authorise its import.

Conclusion: The REP licence did not validly cover import of Sodium Saccharine, and this issue was decided against the assessee.

Issue (ii): Whether the redemption fine and personal penalty required modification.

Analysis: The adjudicating authority imposed redemption fine and penalty without discussion of the margin of profit. In the circumstances, a reduction was warranted on the facts found in the order.

Conclusion: The redemption fine and personal penalty were reduced, and this issue was decided in part in favour of the assessee.

Final Conclusion: The import was held to be unauthorised under the licence, but the monetary consequences were scaled down on reconsideration of the quantum of fine and penalty.

Ratio Decidendi: A restricted item under the import policy cannot be imported under an REP licence unless it is specifically described in the relevant licensing entry, and a generic description is insufficient.

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