Broad construction of "gold" under import policy includes gold coins, defeating confiscation and penalty under the exemption scheme.

The expression "gold" in the Export Import Policy, Special Import Licence and customs exemption notification was construed broadly under the liberalised import scheme. Gold coins were treated as a form of gold in common parlance, and the Tribunal noted that the policy and public notices aimed to facilitate import of gold rather than limit it to primary gold alone. On that construction, gold coins imported under the licence and notification were covered by the import permission and exemption, and the confiscation and penalty were held unsustainable.

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Issues: Whether gold coins imported under the Special Import Licence and covered by Notification No. 117/94-Cus. could be treated as "gold" for the purpose of import permission and customs exemption, and whether confiscation and penalty were sustainable.

Analysis: The expression "gold" in the Export Import Policy, the Special Import Licence and the exemption notification was construed in the context of the liberalised scheme for import of gold. The Tribunal held that the policy did not confine the term to primary gold alone and that, in common parlance, gold coins are a form of gold. It was further held that the object of the notification and the public notices was to facilitate import of gold under the liberalised policy, so a narrow construction excluding gold coins would defeat that object.

Conclusion: Gold coins were held to be covered by the expression "gold" in the relevant import licence and exemption notification. The order of confiscation and penalty was unsustainable and the Revenue's appeal was rejected.

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