Specific import policy permission under OGL prevails over general restriction, defeating confiscation and redemption fines

An import policy entry permitting printed circuit boards under OGL was read as controlling where the goods were not covered by the excluded list, so a broader general restriction could not override the specific permission. On that construction, loaded printed circuit boards imported by an actual user fell within Serial No. 565(15) of Appendix 6 List 8 Part I and were not excluded by Serial No. 113 of Appendix 2 Part B. Once the import was treated as permissible, the basis for confiscation under Section 111(d) of the Customs Act, 1962 fell away, and the associated redemption fines could not be sustained.

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Issues: (i) Whether loaded printed circuit boards imported by an actual user were covered by Serial No. 565(15) of Appendix 6 List 8 Part I of the Import Policy 1985-88 and were excluded by Serial No. 113 of Appendix 2 Part B. (ii) Whether the confiscation of the goods under Section 111(d) of the Customs Act, 1962 and the redemption fines were lawful.

Issue (i): Whether loaded printed circuit boards imported by an actual user were covered by Serial No. 565(15) of Appendix 6 List 8 Part I of the Import Policy 1985-88 and were excluded by Serial No. 113 of Appendix 2 Part B.

Analysis: The entry in Appendix 6 specifically permitted import under OGL of printed circuit boards other than those in Appendix 3 Part A. The goods imported were not covered by Appendix 3 Part A. The general restrictions in paragraph 80(1), footnote (1) to Appendix 6, and the description in Appendix 2 Part B could not cut down the clear scope of the specific OGL entry. An interpretation that excluded both plain and populated printed circuit boards would render the OGL entry ineffective, which could not be accepted. The policy was read to give effect to the specific permission where the policy clearly allowed import.

Conclusion: The loaded printed circuit boards were covered by Serial No. 565(15) and were not excluded by Serial No. 113 of Appendix 2 Part B. The finding was in favour of the assessee.

Issue (ii): Whether the confiscation of the goods under Section 111(d) of the Customs Act, 1962 and the redemption fines were lawful.

Analysis: Once the import was held to be permissible under OGL, the foundation for treating the goods as unauthorised disappeared. The confiscation based on alleged breach of import restrictions therefore could not stand.

Conclusion: The confiscation was not justified and was not in accordance with law. The redemption fines could not survive.

Final Conclusion: The appeals succeeded and the appellants were entitled to consequential relief, with the confiscation and related penalties set aside.

Ratio Decidendi: Where a policy specifically permits import of a described commodity under OGL, a broader general restriction or overlapping entry will not override that clear permission unless the policy expressly excludes the commodity.

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