Import policy clarification on electronic diaries bound customs authorities where the goods fell within the specified licence classification.

Electronic diaries classified under ITC (HS) Heading 84711000.10 were treated as importable against a freely transferable Special Import Licence, because the competent foreign trade authority clarified that such goods were covered by that classification. The import policy made DGFT determinations on interpretive doubts final and binding, so customs could not disregard the clarification absent material showing the imported goods differed from those covered. The contrary customs classification and confiscation order were therefore set aside in favour of the assessee.

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Issues: Whether electronic diaries imported by the appellants were importable against a freely transferable Special Import Licence under the relevant import policy classification, and whether the clarification issued by the Directorate General of Foreign Trade was binding on customs authorities.

Analysis: The imported goods were electronic diaries specifically identified in the ITC (HS) Classification of Export & Import Items under Heading 84711000.10 as goods importable against Special Import Licence. The Directorate General of Foreign Trade had, on the appellants' reference, clarified that electronic diaries under the said code were allowed to be imported against a freely transferable SIL. The policy itself provided that doubts regarding interpretation of its provisions were to be decided by the DGFT and that such decision would be final and binding. In the absence of any material showing that the imported electronic diaries were different from those covered by the classification, the customs authorities were not justified in disregarding the DGFT clarification.

Conclusion: The electronic diaries were held to be importable against a freely transferable Special Import Licence, and the contrary customs classification and confiscation order were set aside in favour of the assessee.

Ratio Decidendi: Where import policy classification specifically covers the goods and the competent foreign trade authority issues a clarification on that classification, customs authorities are bound by that clarification for importability under the policy.

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