Item-wise import licence coverage prevails where separately imported parts are not expressly barred from clearance.

In the absence of an express import policy prohibition or specific restriction, customs authorities must examine each consignment against the REP licence or OGL entry covering that Bill of Entry. Separately imported components and sub-assemblies cannot be refused clearance merely because, when aggregated, they would form complete video cameras in CKD condition. Item-wise licence coverage therefore prevailed, and the confiscation, redemption fine, and duty demand were set aside.

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Issues: Whether separately imported components and sub-assemblies, each covered by the relevant REP licences or OGL entries, could be denied clearance on the ground that, when aggregated, they would constitute complete video cameras in CKD condition requiring a specific licence.

Analysis: The imported goods were covered item-wise by the licences and OGL entries claimed by the appellant. The policy provisions relied upon by the Department did not contain any express restriction comparable to the restrictions considered in earlier cases involving prohibited goods or entries that specifically barred import of complete units in CKD condition. In the absence of a prohibition or an express policy restriction against importing such components and sub-assemblies separately, each Bill of Entry had to be examined on its own terms with reference to the relevant licence or OGL entry. The fact that the goods, if assembled together, would make a complete video camera in CKD condition was held insufficient, by itself, to justify confiscation or refusal of clearance.

Conclusion: The Department could not refuse clearance merely because the separately imported goods, if put together, would form video cameras in CKD condition. The appellant's imports were held to be covered by the relevant REP licences and OGL entries, and the confiscation, redemption fine, and duty demand were set aside.

Final Conclusion: Item-wise legality under the applicable import policy prevailed, and the combined assembly theory could not override the absence of an express prohibition or specific restriction.

Ratio Decidendi: In the absence of an express policy prohibition or restriction against importing components and sub-assemblies separately, customs authorities must assess each import entry by the licence or OGL coverage applicable to that consignment, and cannot deny clearance solely because the items may collectively form a complete prohibited or restricted article in CKD condition.

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