Import licence scope controlled by licensing authority clarification; sulphur-content objection could not defeat permitted use of raw petroleum coke.

The import licence for raw petroleum coke was construed according to the licensing authority's clarification, which confirmed that the goods could be used as feedstock for conversion into calcined petroleum coke. The sulphur-content objection was not treated as a disqualifying import-stage condition because it was not directly relatable to the respondent's permitted use. On that basis, the imported goods were regarded as falling within the licence conditions, and the Revenue's objection was rejected.

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Issues: Whether the imported raw petroleum coke was covered by the licence and permissible for import despite the sulphur-content objection raised by the Revenue.

Analysis: The licence issued by DGFT permitted import of raw petroleum coke for the stated end use, and DGFT was the competent authority to clarify the scope of that permission. DGFT had clarified that the respondent was entitled to use the raw petroleum coke as feedstock for conversion into calcined petroleum coke and that the sulphur content standard was not directly relatable to the respondent at the import stage. In the light of that clarification, the imported goods were treated as falling within the permitted licence conditions.

Conclusion: The imported goods were held to be covered by the licence and the Revenue's objection was rejected.

Ratio Decidendi: Where the licensing authority clarifies the scope of an import licence, that clarification governs the permitted use of the goods and the import cannot be denied on a basis inconsistent with that clarification.

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