Prospective import compliance clarification cannot block provisional release of steel consignments already imported

Imported end-cut rejected CR strips in coil form were not shown to fall within the steel items specifically covered by the original Quality Control Order, so BIS certification could not be insisted upon for provisional release. The later circular broadening compliance to all steel consignments was treated as prospective and could not be applied to consignments already imported before that change. The examination material and test reports also did not conclusively establish the exact nature of the goods so as to justify withholding release. Provisional release was therefore allowed without BIS certification, while leaving any further departmental action open.

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Issues: Whether the imported steel goods, described as end cut rejected CR strips in coil form, could be withheld from provisional release for want of BIS certification and Ministry of Steel clarification under the Steel and Steel Products (Quality Control) Order, 2020 and the later circular.

Analysis: The governing quality control order was issued under Section 16 of the Bureau of Indian Standards Act, 2016 and applied to the steel items specifically covered in its table. The goods in question were found to be non-prime rejected steel strips, and there was no specific mention of such goods in the original order. The later circular expanding the compliance requirement to all steel consignments was treated as prospective, particularly in light of the foreign trade policy principle that a change in import policy does not affect imports already made before the restriction. The test reports and examination material also did not yield a definitive finding on the exact nature of the goods to justify denial of provisional release.

Conclusion: The appellants were entitled to provisional release of the goods without insisting on BIS certification.

Final Conclusion: The impugned refusal to grant provisional release was set aside in substance, and the goods were directed to be released on the basis stated by the Tribunal, without prejudice to any further departmental proceedings.

Ratio Decidendi: A later import-compliance clarification enlarging the scope of restriction operates prospectively and cannot be used to deny provisional release of consignments already imported, where the original quality control order did not expressly cover the goods in question.

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