Import licence flexibility upheld where total imports stayed within face value and distinct goods were covered by the licence.

Import licences under paragraph 84(1)(a) of the Import Trade Control Hand Book were construed as permitting flexibility to import any item covered by the licence, without limit of quantity or value, provided the total imports did not exceed the overall face value of the licence. The Delhi High Court noted that the three stainless steel items were commercially distinct commodities and that the petitioner's imports remained within the licence value. On that basis, the authorities erred in restricting the licence to a single item, and the findings of contravention, confiscation and penalty were unsustainable. The impugned orders were quashed and refund of the fine with costs was directed.

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Issues: Whether the importer was entitled to utilise the three import licences with flexibility under paragraph 84(1)(a) of the Import Trade Control Hand Book of Rules and Procedures, 1968, so long as the total imports did not exceed the overall face value of the licences, and whether the orders imposing confiscation and a fine of Rs. 25,000 were liable to be quashed.

Analysis: The licences permitted import of three distinct stainless steel items and the governing policy provision allowed the licensee to import any item covered by the licence without limit of quantity or value, subject to the condition that the total import should not exceed the overall face value of the licence. The imports made by the petitioner remained within that overall value. The authorities below erred in treating the licence as restricted to a single item and in disregarding the flexibility expressly granted by the policy. The separate stainless steel products were commercially distinct commodities, and the impugned findings of contravention, confiscation, and penalty were not sustainable.

Conclusion: The impugned orders were quashed, and the petitioner was held entitled to refund of the fine with costs.

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