Open General Licence coverage for acetate filament yarn upheld where actual-user proof was required only at clearance

Import of acetate filament yarn was treated as covered by the Open General Licence because the importer had registered the contract with the Textile Commissioner before importation, and the policy, as construed by the Tribunal, required an actual user to furnish declaration and supporting particulars only at the time of clearance. The clause could not be extended to require a certificate of industrial registration either when applying for contract registration or at shipment. On that interpretation, the customs basis for confiscation failed, and the confiscation order with redemption fine was set aside.

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Issues: Whether the import of acetate filament yarn was covered by the Open General Licence and whether confiscation of the goods under the Customs law was justified for want of proof of actual-user status at the stage of shipment or clearance.

Analysis: The importer had registered the contract with the Textile Commissioner before importation. The policy requirement, as construed by the Tribunal, only obliged an actual user to furnish the declaration and supporting particulars at the time of clearance of the goods. The policy clause could not be stretched to require a certificate of industrial registration either at the stage of applying for contract registration or at the time of shipment. On that reading, the import satisfied the Open General Licence conditions and the basis for confiscation was not made out.

Conclusion: The issue is decided in favour of the assessee. The import was held to be covered by the Open General Licence and the confiscation order, along with the redemption fine, was set aside.

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