Legal principle

Items not included in the Negative List of Imports are freely importable without a licence, and the Customs Authorities must follow the interpretation of the Import and Export Policy given by the Import & Export Control Authorities; the alternative-remedy rule is discretionary and does not bar a writ where no written order exists and a pure question of construction is involved.

Court decision

The Court rejected all the respondents' contentions and made the rule absolute in favour of the petitioner, directing the authorities to allow clearance of the Olive Oil subject to payment of customs duty as assessed within a fortnight of the judgment.

Facts

The petitioner imported two consignments of Olive Oil (210 and 400 cartons) from Spain, shipped on 28 March 1992, when Olive Oil was importable under Open General Licence as a 'crude drug' (Item 39, Appendix 6, List 4, Entry 41) under the 1990-93 Import and Export Policy. The vessel arrived at Sandheads on 1 April 1992, the very day the 1992-97 Policy came into force, and Bills of Entry for home consumption were filed on 6 April 1992 and assessed on 22 April 1992. The Customs Authorities refused clearance, treating Olive Oil as a restricted 'consumer good' under the 1992-97 Policy and declaring the importation contrary to Section 111(d) of the Customs Act, 1962. The petitioner filed a writ petition on 8 June 1992, and an interim order directed warehousing of the Olive Oil under Section 49 of the Customs Act at the petitioner's cost.

Key provisions

• Section 111(d), Customs Act, 1962 — Confiscation of improperly imported goods etc
• Section 128, Customs Act, 1962 — Appeal to Commissioner (Appeals)
• Section 49, Customs Act, 1962 — Storage of imported goods in warehouse pending clearance or removal