Restricted import classification prevails where laboratory evidence places goods within a controlled tariff entry despite claimed end-use.

Textile loop fasteners imported from Hong Kong were classified on laboratory evidence as knitted fabric of man-made polyester filament and fell within the restricted ITC HS entry. Because the import policy did not provide any end-use exception, the claimed manufacture of baby nappies by a small-scale unit could not override the licence requirement. Prior imports and intended use were insufficient to displace the classification or the restriction. The importer's small-scale status was relevant, if at all, only to the quantum of fine and not to the legality of the import control. The restricted import finding was upheld and confiscation was sustained.

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Issues: Whether textile loop fasteners imported from Hong Kong without a specific import licence were liable to confiscation under the Import Policy, and whether the claimed end-use by a small-scale unit for manufacture of baby nappies could take the goods outside the restriction.

Analysis: The imported goods were found on the laboratory report to be knitted fabric composed entirely of man-made polyester filament, falling within the relevant ITC HS entry for restricted import. The policy did not prescribe any end-use criterion, and no legal material was produced to contradict the classification or to show that end-use could override the import restriction. The order in appeal had relied on prior imports and intended use for baby nappies without dealing with the laboratory findings or the policy restriction. The status of the importer as a small-scale unit could, at best, be relevant to the quantum of fine, not to the legality of the import restriction itself.

Conclusion: The goods were held to be restricted imports requiring a specific licence, and the claim based on end-use was rejected. The order-in-appeal was set aside and the Revenue succeeded.

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