REP licence endorsement under trading house policy allowed import of packing material despite appendix objections.

A REP licence issued to an Export House or Trading House with endorsement under Paragraph 204 of the Import and Export Policy Book AM 85-88 could permit import of packing material for supporting manufacturers, because the scheme treated trading houses as a distinct category and allowed the special facility subject to the policy conditions. Appendix 17 did not bar the goods on the facts stated, and the absence of a specific entry in Appendix 3A covering the imported goods undermined the prohibition basis for confiscation. On that reasoning, the import was treated as permissible under the licence and the confiscation order was set aside.

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Issues: Whether flip-off seals could be imported under a REP licence issued to a Trading House with endorsement under Paragraph 204 of the Import and Export Policy Book AM 85-88, notwithstanding Appendix 17 and the objection based on Appendix 3A.

Analysis: The licence was issued to an Export House/Trading House and carried an endorsement under Paragraph 204. The scheme treated manufacturer exporters and merchant exporters/trading houses as distinct categories, and the special facility for trading houses under Paragraph 204 permitted import of raw material, components, spares and packing material for supporting manufacturers, subject only to the conditions specifically applicable under the policy. The imported goods were packing material, and there was no established showing that they were barred by Appendix 17 or specifically covered by Appendix 3A. The absence of a specific entry in Appendix 3A to bring the goods within the prohibition also weakened the confiscation order.

Conclusion: The import was held permissible under the licence, and the confiscation order was set aside in favour of the assessee.

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