Regularisation licence for earlier import prevents confiscation of goods treated as restricted without legal basis.

Goods imported under a licence issued by the competent DGFT authority to regularise an earlier import were not to be treated as restricted goods merely because a specific licence existed. Once the licensing authority granted the regularisation licence, the customs appellate authority could not disregard that licence or sit in judgment over its issuance. The view that the licence itself established the restricted character of the goods was found to have no legal basis, so confiscation under Section 111(d) of the Customs Act and the penalty order could not be sustained.

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Issues: Whether goods imported under a licence issued by the competent DGFT authority for regularising the import could still be treated as restricted goods and confiscated under Section 111(d) of the Customs Act.

Analysis: The licence had been issued by the licensing authority expressly for regularising the import already made earlier. Once such a licence is granted by the competent authority, the customs appellate authority cannot disregard it or sit in judgment over its issuance. The reasoning adopted in the impugned order that the mere existence of a specific licence established the restricted character of the goods was held to be unsupported by any legal basis.

Conclusion: The confiscation and penalty order could not be sustained, and the appeal was allowed in favour of the assessee.

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