Open General Licence import of olive oil could not be blocked by actual-user or canalisation restrictions under the policy.

The import policy expressly permitted crude drugs required for ayurvedic and unani medicines to be imported under Open General Licence by all persons, and olive oil was specifically included within that category. A separate actual-user restriction was not found in the policy, so import could not be denied on that basis. The attempt to justify confiscation on canalisation also failed because no notice or finding had been recorded on that ground. The general policy exclusion for goods listed in the appendices did not override the specific permission for olive oil. The confiscation order was therefore set aside and relief followed, including refund of redemption fine if paid.

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Issues: Whether olive oil was importable under Open General Licence as a crude drug available to all persons, and whether the import could be denied on the ground that the importers were not actual users or that the item was canalised and hit by the policy exclusion.

Analysis: The relevant import policy permitted crude drugs required for making ayurvedic and unani medicines to be imported under Open General Licence by all persons, and olive oil was specifically included in the list of such crude drugs. The restriction suggested by the department, based on an actual user requirement, was not found in the policy. The attempt to sustain confiscation on canalisation was also rejected because that ground had not formed part of the original objection or adjudication, no notice had been given on that basis, and no finding had been recorded that olive oil was in fact a canalised item. The policy exclusion for items in the appendices did not apply where the policy itself clearly allowed import of the goods in question.

Conclusion: The import of olive oil was held to be permissible under Open General Licence, and the confiscation order based on actual user restriction, canalisation, and policy exclusion was set aside.

Final Conclusion: The appeal succeeded and the appellants obtained relief against confiscation, with refund of the redemption fine if paid.

Ratio Decidendi: Where the import policy expressly permits a specified item to be imported by all persons under Open General Licence, import cannot be denied by importing an actual user restriction or by invoking canalisation or a general exclusion not supported by a recorded finding and notice on that ground.

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