Beneficial import policy for delayed shipment applied where firm contract and timely bank registration were established.

A beneficial import policy provision allowing delayed shipment under a firm contract was applied liberally where the letter of credit was opened within time, the contract was registered with the bank, and shipment delay resulted from circumstances beyond the importer's control. The contract was treated as a firm commitment for shipment within the policy period despite an inspection condition, and the supplier's inability to ship on time brought the case within the Open General Licence allowance for longer delivery periods. The import was therefore held covered by paragraph 7 of Appendix 10, and confiscation and redemption fine were set aside.

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Issues: Whether the import of a second-hand offset machine was covered by paragraph 7 of Appendix 10 of the Import Policy where the letter of credit was opened within time, registered with the bank, and shipment was delayed because of circumstances beyond the importer's control.

Analysis: The letter of credit was treated as a firm commitment for shipment within the relevant policy period. Although it contained a condition of inspection by the proprietor, the delay in shipment arose from unforeseen circumstances and from the suppliers' own inability to ship within time. The contract was duly registered with the bank, and the case fell within the policy allowance for longer delivery periods under Open General Licence.

Conclusion: The import was covered by paragraph 7 of Appendix 10 of the Import Policy. The confiscation and redemption fine were set aside and the appeal was allowed in favour of the assessee.

Ratio Decidendi: A beneficial import policy provision permitting delayed shipment on a firm contract must be applied liberally where the contract was timely registered and the delay was due to longer delivery period circumstances beyond the importer's control.

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