Import licence covering goods already imported may defeat confiscation, subject to verification of the licence's validity.

Import confiscation based on a circular-driven prohibition was not sustained because the challenge to the circular was rejected on the material before the Tribunal. A later import licence, endorsed as valid for goods already imported, was treated as potentially covering the goods, so the Commissioner was required to verify the original customs copy of the licence and determine whether the import was in fact authorised. The confiscation order was therefore set aside for fresh examination, and any clearance or redemption-fine relief was made dependent on that verification.

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Issues: (i) Whether the import was liable to confiscation on the footing that the goods were prohibited by the relevant import circular notwithstanding the appellant's challenge to the circular-based prohibition. (ii) Whether the later-issued import licence, endorsed as valid for goods already imported, could cover the goods in question and entitle the appellant to clearance and refund of redemption fine.

Issue (i): Whether the import was liable to confiscation on the footing that the goods were prohibited by the relevant import circular notwithstanding the appellant's challenge to the circular-based prohibition.

Analysis: The challenge to the circular-based prohibition was not accepted. The reasoning recorded was that it was first necessary to show that the policy permitted import and that the licensing authority lacked power to modify the policy by circular, which was not established on the material before the Tribunal.

Conclusion: The objection to the prohibition based on the circular was rejected.

Issue (ii): Whether the later-issued import licence, endorsed as valid for goods already imported, could cover the goods in question and entitle the appellant to clearance and refund of redemption fine.

Analysis: The licence produced on record was for the same goods and was endorsed as valid for goods already imported. On that basis, it appeared prima facie that the licence covered the imported goods, and the matter required the Commissioner to verify the original customs copy of the licence and decide whether the importation was covered by it.

Conclusion: The appeal was allowed on this ground, the impugned order was set aside, and the matter was sent back for verification of the licence's validity for the imported goods.

Final Conclusion: The confiscation order did not survive as such, but the importer's entitlement to clearance depended on the Commissioner's fresh examination of the import licence and consequential relief.

Ratio Decidendi: Where a subsequently issued import licence is endorsed as covering goods already imported, confiscation based on alleged prohibition cannot be finally sustained without examining whether the import is in fact covered by that licence.

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