Free import of raw materials confirmed where goods were not consumer goods and a non-binding clarification could not control clearance.

Raw material imported as uninked ribbon tape was treated as freely importable under the Export and Import Policy, 1992-97 because the policy allowed import of raw materials subject to the Negative List, and the goods did not amount to consumer goods merely because they would later be used in manufacture. The customs authorities' reliance on a clarification concerning a different finished product was misplaced, and only the designated authority under the policy could issue a binding clarification for the goods actually covered. The licence requirement was therefore unjustified, and clearance of the goods on assessment of duty followed.

---

---

Issues: Whether uninked ribbon tape imported as raw material was freely importable or required a specific licence under the Export and Import Policy, 1992-97, and whether the clarification relied upon by the customs authorities was binding on the petitioner.

Analysis: The policy conferred a general freedom to import raw materials, subject only to the Negative List. The imported goods required further processing and could not directly satisfy human needs, so they did not answer the description of consumer goods and therefore did not fall within the restricted items list. The clarification relied upon by the respondents related to a different item described as compatible rolls, which was a finished product, and not to the petitioner's raw material. The Court also held that only the designated authority under the policy could issue a binding clarification, and a clarification issued by any other authority could not be treated as final.

Conclusion: The insistence on a licence was unjustified, and the clarification relied upon by the respondents did not govern the petitioner's goods.

Final Conclusion: The writ petition succeeded, and the customs authorities were directed to assess the bill of entry and permit clearance of the goods on payment of duty as assessed.

Ratio Decidendi: Goods that are raw materials requiring further processing do not become consumer goods merely because they may ultimately be used in manufacture, and a binding clarification under the import policy can be issued only by the designated authority and only for the goods actually referred.

---