Disjunctive reading of import policy language allowed REP licence coverage and defeated confiscation of imported components.

Paragraph 204(1) of the ITC Policy for 1985-88 was read as permitting import of raw materials, components, spares and packing material linked to select products exported or manufactured by the licence-holder in either the export factory or another factory of the same name. The expression "or" was treated as disjunctive, so the policy did not require the imported goods to be tied only to the export product. Departmental reliance on paragraph 188 did not override the plain wording of paragraph 204(1), and the Chief Controller's clarification supported that reading. On that construction, the umbrella fittings and components fell within the REP licence and confiscation was unsustainable.

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Issues: Whether the word "or" in paragraph 204(1) of the ITC Policy for 1985-88 was to be read disjunctively so as to permit import of components for use in some other factory of the same name of the manufacturer even when the select product exported was different, and whether the imported umbrella fittings and components were therefore covered by the REP licence.

Analysis: The relevant policy language contemplated import of raw materials, components, spares and packing material related to the select products exported or manufactured by the licence-holder, either in the same factory from which exports were made or in some other factory of the same name. On a close reading of the paragraph, the expression "or" was treated as denoting alternatives, not as requiring a conjunctive reading. The policy text itself showed that the licence could cover a factory other than the export factory, and did not compel the imported goods to be tied only to the export product. The departmental reliance on paragraph 188 did not displace the plain meaning of paragraph 204(1), and the clarification issued by the Chief Controller was taken as supporting that construction.

Conclusion: The word "or" was held to be disjunctive, the imports were treated as covered by the REP licence, and the confiscation order was unsustainable.

Ratio Decidendi: Where the wording of an import policy expressly provides alternative factual situations joined by "or", the expression must be given its ordinary disjunctive meaning unless the text clearly compels a contrary reading; the policy cannot be construed to impose a restriction not found in its language.

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