1991 (7) TMI 211 - AT - Customs

Summary

Issues:
1. Validity of import under OGL.
2. Compliance with Policy 82-83 and 83-84.
3. Interpretation of Para 7 of Appx. 10.
4. Firm contract requirements.
5. Doctrine of harmonious construction.

Analysis:
1. The appeal challenged an order confiscating a consignment including a printing machine, Sona stove, and rubber blankets under Customs Act and Import & Export (Control) Act. The consignment was imported during Policy 83-84, but the appellant claimed it was under OGL during Policy 82-83. The issue was whether the import was valid without a specific license due to changes in OGL status.

2. The appellant argued that the order and letter of credit were from Policy 82-83 when the items were OGL. The delay in shipment was due to external factors, not a change in OGL status. The department contended that the import was unauthorized under Policy 83-84, prevailing at the time of import.

3. The adjudicating authority found the benefit under Para 7 of Appx. 10 of Policy 82-83 not applicable due to lack of evidence of contract registration and an altered letter of credit. The appellant claimed the contract was firm, meeting Para 7 requirements, and the alteration did not affect its validity.

4. The Tribunal noted that the contract was registered with the bank on the same day as the letter of credit, meeting Para 7 criteria. Despite a date change in shipment, the terms remained unchanged, indicating a firm contract. The Tribunal concluded the appellant fell within Para 7 provisions.

5. The department relied on Policy 83-84 changes to argue against clearance. However, the Tribunal emphasized the blanket permission in Para 7 of Policy 82-83, allowing imports until 31-3-1984. It invoked the doctrine of harmonious construction and promissory estoppel to protect the appellant's reliance on the earlier policy.

6. Ultimately, the Tribunal set aside the authority's order, allowing the appeal and directing consequential relief. The decision hinged on the appellant's compliance with Para 7 of Appx. 10 of Policy 82-83, despite changes in subsequent policies.