Specific import permission prevails over general restrictions when technical evidence fits the goods within the permitted description.

Imported machinery was treated as centrifugal gas compressors because technical evidence, including DGTD opinion, showed they could compress gases such as nitrogen despite being physically designed as air compressors. On that basis, the goods fell within the specifically permitted description under Entry 20(2) of Appendix 1 Part B of the Import Policy 1988-91. The broader restrictions in Appendix 3 Part A and Para 21 did not override that specific permission, as Para 21 was read as governing interpretation between competing entries and not as defeating an express licence entry. The note also records that where conflicting views exist, benefit of doubt should go to the importer.

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Issues: (i) Whether the imported goods were centrifugal gas compressors eligible for Open General Licence under Entry 20(2) of Appendix 1 Part B of the Import Policy 1988-91, and (ii) whether the restrictions in Appendix 3 Part A and Para 21 of the Import Policy 1988-91 barred such import.

Issue (i): Whether the imported goods were centrifugal gas compressors eligible for Open General Licence under Entry 20(2) of Appendix 1 Part B of the Import Policy 1988-91

Analysis: The goods were found to be physically designed as air compressors, but the decisive question was whether they could also function as gas compressors. The technical material, including the opinion of the DGTD, supported the view that the compressors were capable of compressing gases such as nitrogen. In the absence of contrary material, and given the relationship between air and gases in the relevant technical sense, the classification adopted by the Collector was sustained.

Conclusion: The goods were held to fall within the description of centrifugal gas compressors and were eligible under Entry 20(2) of Appendix 1 Part B.

Issue (ii): Whether the restrictions in Appendix 3 Part A and Para 21 of the Import Policy 1988-91 barred such import

Analysis: Para 21(c) was treated as governing inter se interpretation between competing entries in the appendices, and not as defeating a specific permission under Appendix 1. Para 21(f) was also held not to disqualify the import, because gas compressors were specifically permitted in Appendix 1 Part B, while Appendix 3 Part A dealt with a different category of goods. The Collector's further finding that the goods, being capital goods imported for installation in manufacturing factories, were not governed by Appendix 3 was also accepted. Where there was any conflict in views, the benefit of the doubt was to go to the importer.

Conclusion: The restrictions in Appendix 3 Part A and Para 21 did not bar the import.

Final Conclusion: The import was upheld as permissible under the policy, and the departmental challenge failed.

Ratio Decidendi: Where the technical evidence supports the classification of imported machinery within a specifically permitted description, and the policy contains a specific permission, a broader restrictive entry or general prohibition will not defeat that permission absent clear contrary material.

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