Import policy interpretation favoured laboratory grade chemicals where prohibitory entries did not expressly include them.

Laboratory grade chemicals imported under a replenishment licence were treated as outside Appendices 3 and 5 of the Import Policy 1981-82 where those entries did not expressly refer to "laboratory grade" or "all grades". The stated practice of the Customs House supported the view that laboratory chemicals were not intended to fall within the prohibitory or restricted entries unless specifically named, and earlier departmental orders reinforced that reading. On that basis, the goods were regarded as covered by the licence produced by the importer, with consequential relief following from the acceptance of permissibility under the licence.

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Issues: Whether laboratory grade chemicals imported under a replenishment licence were excluded by Appendices 3 and 5 of the Import Policy 1981-82 in the absence of the expressions "laboratory grade" or "all grades", and whether the Customs House practice supported their clearance.

Analysis: The appeal turned on the construction of Para 185 of the Import Policy 1981-82 and the treatment of chemicals listed in the relevant appendices. The reasoning accepted that items in the later appendix were banned and that the restricted items in the other appendix stood on a different footing, but the decisive consideration was the departmental practice relied upon by the importer. That practice indicated that laboratory chemicals were not intended to be covered by items in Appendices 3 and 5 unless those appendices expressly carried the words "laboratory grade" or "all grades". The lower authorities had not squarely dealt with this plea, and the record showed support for the practice from earlier orders. On that basis, the imported chemicals were treated as laboratory grade goods not falling within the prohibitory entries.

Conclusion: The chemicals were held not to be covered by Appendices 3 and 5 and were therefore covered by the licence produced by the importer.

Final Conclusion: The appeal succeeded and the import was treated as permissible under the licence, with consequential relief granted.

Ratio Decidendi: Where policy entries do not expressly include laboratory grade chemicals or all grades, and the established Customs House practice supports exclusion of such laboratory chemicals from the prohibitory entries, the goods are not treated as covered by the banned or restricted appendices.

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