Specific import classification governs validity of licence and defeats confiscation where alloy steel bars fit Appendix 4C.

Imported alloy steel bars were classified by comparing the bill of entry and invoice descriptions against competing Import Policy entries. Applying the rule that a specific entry prevails over a general or residuary one, the Tribunal examined the goods' size, shape and technical characteristics and followed earlier decisions on alloy steel flats and bars. It accepted that the goods answered Appendix 4C rather than the restrictive entry relied on by the department. The import licence was therefore treated as valid, and the basis for confiscation and penalty failed.

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Issues: Whether the imported alloy steel bars were covered by Appendix 4C of the Import Policy or by Appendix 3B so as to determine the validity of the import licence and the consequent liability to confiscation and penalty.

Analysis: The dispute turned on the proper classification of the goods described in the bills of entry and invoices. The Tribunal applied the principle that a specific entry prevails over a general or residuary entry, and examined the competing policy entries in the light of the descriptions of the goods, their size, shape and technical characteristics. It also relied on earlier tribunal decisions dealing with alloy steel flats and bars, and accepted the assessee's contention that the impugned goods answered the description covered by Appendix 4C rather than the more specific restrictive entry invoked by the department. On that basis, the import licence was treated as valid for the goods imported and the foundation for confiscation and penalty did not survive.

Conclusion: The issue was decided in favour of the appellant. The imported goods were held to fall under Appendix 4C, the impugned confiscation orders were unsustainable, and the appeals succeeded.

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