Actual user import of float glass upheld; negative-list objection and penalty were found unsustainable

Float glass imported under the Import Policy 1992-97 was treated as permissible for an actual user manufacturing decorative mirrors, because a clarificatory policy circular stated that float glass was not consumer goods and could be imported as raw material subject to the actual user condition. The importer's SSI registration supported actual user status, and the contrary view that the goods fell within the negative list was rejected. On these facts, the import was not liable to confiscation, and the penalty could not be sustained.

---

---

Issues: Whether the imported float glass was covered by the negative list under the Import Policy 1992-97 and therefore liable to confiscation and penalty, or whether the importer qualified as an actual user entitled to import float glass for manufacture of decorative mirrors treated as consumer durables.

Analysis: The importer held SSI registration for processing decorative mirrors and glasses, which supported its status as an actual user. The clarificatory import policy circular stated that float glass was not to be treated as consumer goods and could be imported by actual users as raw material for manufacture, subject to the actual user condition. The contrary view taken below that mirrors were not consumer durables was rejected, and the order was also found inconsistent with other clearances of float glass under the same policy. On the facts, the import was not hit by the negative list and the confiscation and penalty could not stand.

Conclusion: The issue was decided in favour of the assessee; float glass was permissible for import by the actual user for manufacture of decorative mirrors, and the confiscation and penalty were unsustainable.

---