Generic import descriptions cover admitted-use goods unless expressly excluded; Appendix 3 restrictions did not override Appendix 17 licences.

A generic import description will include Potassium Cyanide under the phrase "electroplating salts and brighteners" because the policy did not expressly exclude it and the material showed admitted use in electroplating, even if in scant quantity. Paragraph 21(c) read with Entry 355(10) of Appendix 3 did not bar imports under REP licences issued under Appendix 17, because Appendix 17 operated as a self-contained scheme and the overriding effect was not extended to it. The import was treated as valid under the REP licences, and confiscation, redemption fine, and penalty were set aside.

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Issues: (i) Whether the generic entry "electroplating salts and brighteners" covered Potassium Cyanide for import under the REP licences; (ii) Whether paragraph 21(c) of the Import Policy read with Entry 355(10) of Appendix 3 barred import of Potassium Cyanide against the REP licences issued under Appendix 17.

Issue (i): Whether the generic entry "electroplating salts and brighteners" covered Potassium Cyanide for import under the REP licences.

Analysis: The Import Policy did not state that a salt with only minor or scant use in electroplating was excluded from the generic description. Technical material and the Customs Public Notice showed that Potassium Cyanide was used in electroplating, though in scant quantity. The licensing authority, while later excluding Sodium Cyanide, did not exclude Potassium Cyanide from the generic entry, indicating that the entry was understood to include it.

Conclusion: The generic entry covered Potassium Cyanide, in favour of the assessee.

Issue (ii): Whether paragraph 21(c) of the Import Policy read with Entry 355(10) of Appendix 3 barred import of Potassium Cyanide against the REP licences issued under Appendix 17.

Analysis: Paragraph 21(c) referred specifically to Appendices 2 and 3, and its overriding effect was not extended to Appendix 17. Appendix 17 operated as a self-contained scheme, and only Appendix 2 had been given overriding force over it. Entry 355(10) in Appendix 3, though specific, did not exclude Potassium Cyanide from the generic entry in Appendix 17.

Conclusion: The restriction in paragraph 21(c) read with Entry 355(10) did not prevent import under Appendix 17, in favour of the assessee.

Final Conclusion: The import was held to be valid under the REP licences, and the confiscation, redemption fine, and penalty were set aside with consequential relief.

Ratio Decidendi: A generic import description will include a commodity that is admittedly used for that purpose unless the policy expressly excludes it, and a specific entry in one appendix does not override a self-contained later appendix unless the policy clearly gives it overriding effect.

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