Importability under policy clarification requires consideration of the final interpretive ruling before confiscation can stand.

Confiscation and redemption for import of Mace could not be sustained where the importability issue was decided without obtaining and considering the controlling clarification under the Import and Export Policy. The policy treated questions of interpretation as referable to the Director General of Foreign Trade, whose decision was final; therefore, the adjudication was incomplete and unsatisfactory when that clarification had not been called for before the original order. The order was set aside and the matter remanded for fresh adjudication after considering the relevant clarification and giving the importers a personal hearing.

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Issues: Whether the confiscation and redemption order could be sustained when the licensing authority's clarification on importability of Mace had not been called for and considered, and whether the matter required reconsideration in the light of the Import and Export Policy.

Analysis: The import dispute turned on whether Mace was covered by the Negative List of Goods. A local import-export authority had opined that Mace was freely importable and had referred to the higher authority's clarification. The policy itself provided that any question or doubt regarding interpretation of the policy was to be referred to the Director General of Foreign Trade and that decision would be final. Since the higher-level clarification relied upon by the appellants had not been called for or examined before the original order was passed, the adjudication was found to be incomplete and unsatisfactory.

Conclusion: The impugned order was set aside and the matter was remanded for fresh adjudication after obtaining and considering the relevant clarification and after giving the appellants a personal hearing.

Final Conclusion: The customs order did not survive and the dispute was sent back for fresh decision on the importability issue.

Ratio Decidendi: Where the controlling policy makes a higher authority's interpretation final, an adjudication on importability cannot be sustained without considering the relevant clarification and must be reopened for de novo decision.

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