REP licence flexibility cannot be clubbed across multiple licences for one item; confiscation sustained, penalty deleted, fine reduced.

REP licence flexibility could not be clubbed across multiple transferable licences to import a single hydraulic cylinder, because the flexibility applied only to the particular licence and the item exceeded the prescribed monetary ceiling. Confiscation was therefore sustained on merits. The importer's actual-user status and the non-profit character of the import justified moderation of penal consequences, so the penalty was set aside and the redemption fine was reduced. The appeal succeeded only in part, with confiscation confirmed but relief granted on penalty and fine.

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Issues: (i) Whether REP licences could be clubbed to cover import of a single hydraulic cylinder under the flexibility provisions of the AM 1988-1991 Policy. (ii) Whether the confiscation, penalty, and redemption fine required modification.

Issue (i): Whether REP licences could be clubbed to cover import of a single hydraulic cylinder under the flexibility provisions of the AM 1988-1991 Policy.

Analysis: The flexibility endorsed in an REP licence operates only in relation to that particular licence. A transferable licence cannot be read to permit aggregation of the value available across multiple licences for the import of one item. The policy provisions governing flexibility and the definition of a single item were construed in the context of a single licence, and the imported item in any event exceeded the prescribed monetary ceiling.

Conclusion: The objection to clubbing of REP licences was upheld and confiscation on merits was sustained.

Issue (ii): Whether the confiscation, penalty, and redemption fine required modification.

Analysis: While the confiscation was maintained, the importer's status as an actual user and the nature of the import justified relief in relation to the penal consequences. The Tribunal treated the import as not involving a profit motive and considered the quantum of penalty and fine independently of the validity of confiscation.

Conclusion: The penalty was set aside and the redemption fine was reduced.

Final Conclusion: The appeal succeeded only in part: the confiscation was confirmed, while the penalty was deleted and the redemption fine was reduced.

Ratio Decidendi: Flexibility endorsed in an REP licence cannot be aggregated across multiple transferable licences for importing a single item, and while confiscation may be sustained on that basis, the penal consequences may be moderated on the facts.

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