Import restriction on wool tops construed contextually; cashmere tops held outside the restricted entry and the customs order was set aside.

Cashmere tops imported under the relevant import policy were held not to fall within the restricted entry for wool tops, because the policy description had to be read in its statutory and contextual setting. The Tribunal distinguished cashmere, as hair of special goats, from wool, as hair of sheep or lambs, and treated the contrary description in the spot adjudication order as an obvious error. On that basis, the goods were outside S. No. 106 of Appendix 2/Pt.-B and were not subject to the restriction, so the appeal succeeded and the customs order was set aside.

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Issues: Whether cashmere tops imported by the appellant were covered by S. No. 106 of Appendix 2/Pt.-B of the Import Policy 1985-88 as wool tops, or were outside the restricted entry and therefore permissible under OGL.

Analysis: The import policy classification was read in the light of paragraph 59 of the Hand-Book of Imports & Exports Procedures, 1985-88, which indicated correlation with the tariff classification framework based on the CCCN. On the materials placed before it, the Tribunal found a clear distinction between cashmere tops, being hair of special goats, and wool, which is hair of sheep or lambs. The description in the spot adjudication order as wool tops was treated as an obvious error, since the bill of entry and supplier's documents described the goods as cashmere tops and Mangol super tops. The Tribunal also noted that the Supreme Court's approach in construing restricted import entries supports interpretation of the entry in its statutory and policy context rather than by a loose popular meaning.

Conclusion: The imported goods were not wool tops within S. No. 106 of Appendix 2/Pt.-B, and the restriction did not apply. The appeal succeeded and the impugned order was set aside.

Final Conclusion: The goods were held to be outside the restricted import entry, with the result that the appellant obtained relief against the customs adjudication.

Ratio Decidendi: Where an import restriction uses a commodity description in a policy schedule, the entry must be construed in its statutory and contextual setting, and goods falling within a distinct commercial category not covered by the restricted wording cannot be brought within it by an erroneous description.

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