Specific import policy provisions for specialised instruments prevail over a general electronic equipment restriction, favouring the importer.

Specialised measuring instruments imported as complete equipment were treated as permissible capital goods or instruments under the Import Policy, 1990-93. The policy's specific provisions for measuring and testing instruments, and for instruments imported through the capital goods procedure, were held not to be overridden by a general restrictive entry for electronic equipment and systems. The wider definition of capital goods and the policy scheme in Chapter III supported importability, while the licensing authority's clarification and prior imports reinforced that reading. Any remaining ambiguity had to be resolved in favour of the importer, and the imported magnetic flow meter transmitter was therefore not covered by the restriction.

---

---

Issues: Whether specialised measuring instruments imported as complete equipment were covered by the restrictive entry for electronic equipment and systems in the Import Policy, 1990-93, or were permissible as capital goods / instruments under the policy provisions dealing specifically with instruments.

Analysis: The policy contained specific provisions for import of measuring or testing instruments and for import of instruments as capital goods. The definition of capital goods was wide enough to include equipment and accessories required for production or services, and the policy also contemplated import of instruments under the capital goods procedure. A general exclusionary entry for electronic equipment and systems could not be read so broadly as to nullify the detailed scheme in Chapter III governing instruments, especially when the policy used the narrower expression and instruments were dealt with elsewhere. The licensing authority's own clarification and past imports reinforced the view that the policy did not intend to prohibit such specialised instruments. Where doubt remained, it had to go to the importer.

Conclusion: The imported magnetic flow meter transmitter was not hit by the restrictive entry and was allowable under the policy. The confiscation and penalty could not stand.

Ratio Decidendi: A general prohibition in an import policy does not override specific provisions elsewhere in the same policy permitting import of specialised instruments as capital goods, and any remaining ambiguity must be resolved in favour of the importer.

---