REP licence cannot override import restriction for nutmegs without shell when goods are not specifically listed.

Nutmegs without shell were held not to fall within the list of goods freely importable as specific crude drugs under the relevant Public Notice, so they remained subject to the Export-Import Policy restriction. A general REP licence could not override that policy requirement or dispense with the need for a specific licence or endorsement for an item not expressly covered. The earlier Calcutta HC ruling on circulars was distinguished because the present dispute did not turn on those circulars. The import was therefore not covered by the REP licence, and the goods were treated as restricted.

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Issues: Whether nutmegs without shell could be imported under a REP licence without a specific endorsement, or whether the goods required a licence under the Export-Import Policy and the Public Notice governing crude drugs.

Analysis: The goods were not included in the list annexed to the Public Notice dated 31-3-1993 and were therefore not freely importable as specific crude drugs. The earlier Calcutta High Court ruling on circulars did not govern the present case because the dispute here did not turn on those circulars. A REP licence, even if otherwise valid, could not dispense with the need for compliance with the policy restriction applicable to the goods in question. Nutmegs without shell were treated as spice and consumer goods, and the policy amendment required a licence for items not specifically listed.

Conclusion: The import was not covered by the REP licence and the goods remained restricted. The finding was against the assessee.

Ratio Decidendi: Where an item is not specifically included in the policy list permitting import without licence, a general REP licence does not override the requirement of a specific licence or endorsement for that item.

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