Judgment

KASLIWAL, J.:- Special leave granted.

2. This appeal has been filed against the judgment of the Bombay High Court dated 18-6-1991. The short controversy raised in the present case is whether the Cloves imported by the appellant fall within Item 169 in List 8 of Appendix 6 or fall within Paragraph 167 of Chapter XIII of the Import and Export Policy April, 1990-March, 1993.

3. Brief facts of the case are that the appellant obtained by transfer an Import Licence No. 3412179 dated 29th November, 1990 for Rs. 16,10,700/- for the import of admissible Items as per Paras 220(2)(3)(4) and (6) of the Import Policy 1990-93 Vol. I. After acquisition of the aforesaid additional licence, the appellant placed an order for the supply of about 200 bags of Madagascar cloves No. 1 quality to a firm of Singapore. The appellant opened a letter of credit dated 6-5-1991 in favour of the foreign supplier. On receipt of the letter of credit the foreign supplier shipped the above mentioned goods in favour of the appellant. On arrival of the goods at Bombay Port, the appellant filed Bill of Entry for the clearance of the goods for home consumption on 30th May, 1991. The appellant claimed clearance of