Import licence interpretation allows alternative listed inputs within overall limits; "or" does not bar combined import.

A quantity-based import licence allowing polyester non-woven felt, polyester staple fibre, or polyester waste was construed in its commercial context to permit import of more than one listed input within the overall licence limits. The use of the word "or" did not, by itself, bar combined imports where all three items were recognised as usable for the export product and import remained within the prescribed quantity and value limits. The customs objection was therefore not sustainable in principle, and the matter was remitted for verification of compliance with the licence limits, with consequential return of sale proceeds if the import was within limits.

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Issues: Whether, on a proper construction of the import licence, the appellant could import more than one of the three listed polyester products within the prescribed quantity limits and claim the benefit of the customs exemption notification.

Analysis: The licence used the word "or" between polyester non-woven felt, polyester staple fibre, and polyester waste. The wording was unusual, but the three items were all recognised as usable for the export product and each was importable within the prescribed limit. In that setting, the exclusion of combined import of the specified goods was not justified merely by the use of the word "or". The customs objection would not increase foreign exchange outgo or duty foregone so long as the import remained within the permitted overall limits. The appellant was therefore entitled, on the licence as framed, to proportionately import any or all of the three items.

Conclusion: The objection to the import was not sustainable in principle, and the appeal succeeded to that extent.

Final Conclusion: The impugned order was set aside and the matter was sent back for verification of whether the import satisfied the quantity and value limits in the licence, with consequential return of sale proceeds if the import was within limits.

Ratio Decidendi: Where a quantity-based import licence, read in its commercial and factual context, permits alternative listed inputs for the same export obligation, the word "or" does not necessarily bar import of more than one listed item within the overall licence limits.

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