Specific import licence entry for scrap for remelting prevails over general residual classification under the Import Policy.

Imported heavy melting scrap fell within the specific entry in Appendix 5A for waste and scrap for remelting, not the general residual entry in Appendix 2B for defective or scrap material not otherwise provided for. Construing Para 21(b) and 21(c), the specific description in Appendix 5A prevailed over the broader Appendix 2B classification. Because the goods were cleared as melting scrap under the relevant customs notification and the importer had executed an end-use bond as an actual user, the additional licence covered the import and the objection based on Appendix 2B failed.

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Issues: Whether heavy melting scrap imported as melting scrap was covered by the additional licence under Sr. No. 17 of Appendix 5A of the Import Policy, or whether it fell under Sr. No. 147 of Appendix 2B and was therefore unauthorised.

Analysis: Sr. No. 17 of Appendix 5A covered waste and scrap for remelting in any form or condition, while Sr. No. 147 of Appendix 2B covered defective or scrap material not otherwise specifically provided for in the relevant appendices. The goods had been cleared as melting scrap under Notification No. 480/86-Cus., and the importer, being an actual user, had executed the end-use bond. On the construction of Para 21(b), an item in Appendix 5 prevails over an item in Appendix 2 Part B, and Para 21(c) was read as governing inter se priority between specific and generic descriptions within the relevant appendices. The specific entry for scrap for remelting in Appendix 5A therefore prevailed.

Conclusion: The licence was valid for import of the melting scrap, and the objection based on Appendix 2B failed.

Ratio Decidendi: Where imported goods squarely fall within a specific entry in Appendix 5A covering scrap for remelting, that entry prevails over a more general entry in Appendix 2B and authorises the import.

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