Advance licence exemption upheld where mirror-finished stainless steel still matched AISI 304 specifications and no express prohibition existed.

Imported stainless steel was held eligible for Notification No. 204/92 where advance licences covered export of stainless steel utensils of AISI 304 specification and the evidence showed both exported and imported goods met that specification. Mirror finish and higher value, without a specific prohibition in the licence or notification, did not by themselves establish a mismatch in description, quality, technical characteristics or dimensions, so the exemption could not be denied on that ground. The benefit of the notification was therefore sustained and the departmental challenge failed.

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Issues: Whether the imported stainless steel, being mirror-finished and of higher value, was disqualified from the benefit of Notification No. 204/92 on the ground that it did not conform to the export product's description, quality, value and technical characteristics.

Analysis: The import was made against advance licences issued for export of stainless steel utensils of AISI 304 specification. The available material showed that both the exported and imported goods conformed to AISI 304 specifications, and the mere fact that the imported goods were mirror-finished did not establish any mismatch in specifications, characteristics or dimensions. The absence of a specific prohibition in the licence or notification against such imports meant that the higher value or superior finish of the imported material could not by itself defeat the exemption.

Conclusion: The benefit of Notification No. 204/92 was rightly extended and the department's appeal failed.

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