Import policy interpretation: clear canalisation wording prevailed over ejusdem generis, while the redemption fine was reduced.

Clear import policy language was applied to hold that khaskhas (poppy seeds) fell within the canalised category in Appendix-5 and was therefore not importable under OGL. The Tribunal rejected reliance on ejusdem generis because the policy wording was plain and comprehensive, and it held that an administrative clarification from STC could not override the import policy's text. The confiscation finding was upheld, but the redemption fine was moderated on equitable considerations, including the importer's status as an actual user and the goods' use as raw material for licensed drug manufacture, resulting in partial relief only.

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Issues: (i) Whether khaskhas (poppy seeds) imported by the appellant was covered by the canalisation note in para 5 of Appendix-5/Pt.B of the AM-1985-88 Policy and therefore not importable under OGL; (ii) Whether the redemption fine imposed in lieu of confiscation required reduction.

Issue (i): Whether khaskhas (poppy seeds) imported by the appellant was covered by the canalisation note in para 5 of Appendix-5/Pt.B of the AM-1985-88 Policy and therefore not importable under OGL.

Analysis: The policy entry grouped oils and seeds together and expressly stated that all other oils/seeds not specifically mentioned in the policy would also be imported only by the canalising agency. The requested application of ejusdem generis was rejected because the wording was held to be clear on a plain reading and did not create any absurdity warranting departure from literal construction. The Tribunal also held that an administrative clarification from STC could not control the proper interpretation of the policy, and that the relevant policy principle excluded OGL import where an item was covered by Appendix-5 unless the policy clearly allowed otherwise.

Conclusion: The import of khaskhas was held to fall within the canalised category and was not permissible under OGL.

Issue (ii): Whether the redemption fine imposed in lieu of confiscation required reduction.

Analysis: While upholding the confiscation and the finding on importability, the Tribunal took into account that the importer was an actual user, the goods were required as raw material for licensed drug manufacture, and similar goods had earlier been treated differently under a different policy. These circumstances justified moderation of the monetary penalty component.

Conclusion: The redemption fine was reduced to Rs. 8,000 in each case.

Final Conclusion: The finding that the goods were not importable under OGL was sustained, but the fine in lieu of confiscation was reduced, resulting in only partial relief to the appellant.

Ratio Decidendi: Where policy language is clear and comprehensive, literal construction prevails over ejusdem generis, and an administrative clarification cannot override the plain meaning of the import policy; however, penalty relief may be moderated on equitable considerations without disturbing the substantive finding of contravention.

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