Import policy classification prevails over OGL claims where a specific entry covers poppy seeds and bars residuary import treatment.

Khaskhas or poppy seeds were treated as not canalised under Appendix 5B of the 1984-85 Import Policy on the earlier Tribunal view that imports by actual user industrial manufacturers of Ayurvedic and Unani medicines were outside that restriction. However, import under OGL failed because the goods were not specifically covered as a crude drug, and the residuary stock-and-sale entry could not override the specific classification of poppy seeds as consumer goods of agricultural origin under Appendix 2 Part B Item 104. Confiscation was maintained, the appeal failed on merits, and only the redemption fine was reduced.

---

---

Issues: (i) Whether khaskhas or poppy seeds were a canalised item covered by Appendix 5B of the 1984-85 Import Policy. (ii) Whether the goods could be imported under OGL as a crude drug or for stock and sale under Appendix 6 List 8 Part III.

Issue (i): Whether khaskhas or poppy seeds were a canalised item covered by Appendix 5B of the 1984-85 Import Policy.

Analysis: The earlier Tribunal view accepted that khaskhas imported by actual user industrial manufacturers of Ayurvedic and Unani medicines was not a canalised item. On that basis, the adjudicating authority's classification of poppy seeds under the canalised entry in Appendix 5B was not sustainable.

Conclusion: The item was not held to be a canalised item under Appendix 5B.

Issue (ii): Whether the goods could be imported under OGL as a crude drug or for stock and sale under Appendix 6 List 8 Part III.

Analysis: Import as a crude drug was excluded because the item did not find specific mention in Appendix 6 List 4. Import for stock and sale under Appendix 6 List 8 Part III was also unavailable because the interpretative note in Chapter 22 precluded OGL import where an item fell within Appendix 2 to 5 or 8 by specific or generic description unless the policy clearly permitted it. Poppy seeds answered the description of consumer goods of agricultural origin and were covered by Appendix 2 Part B Item 104, which prevailed over the residuary OGL entry.

Conclusion: The goods were not eligible for clearance under OGL either as a crude drug or for stock and sale.

Final Conclusion: The confiscation was maintained and the appeal failed on merits, with only the redemption fine being reduced.

Ratio Decidendi: Where an imported item falls within a specific or generic prohibitory or coverage entry in the import policy, a residuary OGL entry cannot be invoked to defeat that specific classification.

---