Import policy and exemption notification construed by text: semi-finished plastic rolls fell within the restricted entry, but customs exemption remained available.

Self-adhesive polypropylene jumbo rolls were treated as manufactured semi-finished goods rather than polypropylene in basic form, so they fell within the restricted entry for self-adhesive tapes under the import policy when para 20(8) extended coverage to semi-finished materials. The exemption notification was construed by its plain language: articles made of artificial resin and plastics, including the residuary entry, were not confined to finished consumer goods, and no additional limitation could be read in by implication. On that approach, the import was unauthorised under the policy, but exemption under Notification No. 341/76-Cus. was available.

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Issues: (i) Whether self-adhesive polypropylene jumbo rolls could be imported under Group 0.1 of Appendix 17 of the Import and Export Policy, April, 1985 - March, 1988, or were covered by the restricted goods entry in Appendix 2 Part B by virtue of para 20(8); (ii) whether the imported goods were entitled to exemption under Notification No. 341/76-Cus. dated 2-8-1976.

Issue (i): Whether self-adhesive polypropylene jumbo rolls could be imported under Group 0.1 of Appendix 17 of the Import and Export Policy, April, 1985 - March, 1988, or were covered by the restricted goods entry in Appendix 2 Part B by virtue of para 20(8).

Analysis: The relevant policy entry allowed polypropylene in its basic or primary form and did not include manufactured articles such as self-adhesive films or sheets. The goods described in the invoice were self-adhesive coated jumbo rolls, intended to be slit and rewound into tapes, and were therefore treated as manufactured semi-finished articles rather than simple polypropylene material. Para 20(8) extended the policy entries to semi-finished materials, and on that basis the goods fell within the restricted entry for self-adhesive tapes of all types.

Conclusion: The import was held unauthorised and the issue was decided against the assessee.

Issue (ii): Whether the imported goods were entitled to exemption under Notification No. 341/76-Cus. dated 2-8-1976.

Analysis: The notification covered articles made of artificial resin and plastic materials, and item 12 was a residuary entry. Nothing in the notification required the covered articles to be finished consumer goods, and the court rejected the restrictive construction placed on the notification. The principle applied was that exemption notifications must be construed according to their language without importing additional conditions by intendment.

Conclusion: The assessee was held entitled to the exemption under the notification.

Final Conclusion: The confiscation was maintained, but the redemption fine was reduced and the nominal penalty was affirmed, while exemption under the customs notification was allowed.

Ratio Decidendi: An exemption notification and import policy entry must be construed strictly according to their express language, and where the policy extends to semi-finished materials, a manufactured semi-finished import may still fall within a restricted entry; a residuary exemption entry cannot be narrowed by adding words not found in the notification.

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