Import licence validity turns on Indian pharmacopoeial standards and benefit of doubt where departmental practice is inconsistent.

Conflicting Indian and foreign pharmacopoeial standards on Thiamine Mononitrate imports under replenishment licences were resolved in favour of the Indian standard, which treated Vitamin B1 as Thiamine Hydrochloride. The record also showed inconsistent Customs practice on similar imports and a clarification by the licensing authority that the goods could be imported against export house entitlement. In that setting of uncertainty, the importer received the benefit of doubt, the import was treated as valid under the licences, and the fines were set aside.

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Issues: Whether Thiamine Mononitrate could be treated as a permissible import under the replenishment licences in the prevailing policy framework, and whether the importers were entitled to relief where there was confusion between Indian and foreign pharmacopoeial standards.

Analysis: The relevant policy and the surrounding administrative practice were examined along with the Indian Pharmacopoeia and the materials relied upon by the importers. The record showed that the Indian standard treated Vitamin B1 as Thiamine Hydrochloride, while the Customs House itself had taken conflicting positions on similar imports at different times. The licencing authority had also clarified that the impugned goods could be imported against the entitlement of export houses. In these circumstances, where there was doubt and a divergence between Indian and foreign standards, the Indian standard was held to prevail and the importers were entitled to the benefit of doubt.

Conclusion: The import was held to be valid against the licences, and the orders imposing fine were set aside in favour of the assessees.

Ratio Decidendi: Where the legality of an import is doubtful because of conflicting standards and inconsistent departmental practice, the Indian standard prevails and the importer is entitled to the benefit of doubt.

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