Import licence rights prevail over a non-statutory public notice that did not cover quartz crystals and clock circuits.

Public Notice dated 3-7-1980 did not canalise quartz crystals and integrated circuits imported for clocks and time pieces, because the relevant Appendix 8 entry covered only components and modules of electronic watches and the specified integrated circuits used in watches, clocks and time pieces. Public notices under the import control scheme were treated as policy statements rather than statutory orders, so they could not divest rights already conferred by a valid import licence. As the licence had been issued before the public notice and remained operative during the import period, the confiscation order was unsustainable and the appeal succeeded.

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Issues: Whether the Public Notice dated 3-7-1980 canalised the imported quartz crystals and integrated circuits used for clocks, and whether such a non-statutory public notice could override rights already conferred by a valid import licence.

Analysis: The imported goods were found to be quartz crystals and integrated circuits meant for clocks and time pieces, while the canalising entry in Item 59 of Appendix 8 covered components and modules of electronic watches and only those integrated circuits used in watches, clocks and time pieces as specified therein. On the wording of the public notice, it did not extend to quartz crystals and integrated circuits for clocks. The ruling further applied the principle that public notices under the import control scheme are policy statements and not statutory orders; rights arising under a valid licence cannot be divested merely by a non-statutory policy change. The licence here was issued before the public notice and remained operative during the relevant import period.

Conclusion: The confiscation order was unsustainable, and the appeal was allowed in favour of the assessee.

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