The term "seeds" in a specific import policy clause is not generic but is restricted by context to those intended for germination or plantation and having a nexus with specified export products.

JUDGMENT

B.N.KIRPAL, J.

(1) IN this appeal, the question which arises for consideration is whether the inshell almonds imported by the appellants were seeds/bulbs/mother plant germ plasm.

(2) IT appears that the appellants utilised replenishment licence for the import of this article. The licence was granted on the basis of the exports which had been made. The relevant entry in appendix 17 of the import control policy for the year 1985-88 was as follows: Sl. Export product Import replenishment Materials permitted Remarks No. percentage for import 1 2 3 4 5 G.2 Other fresh fruits/ vegetables/vegetable seeds/flowers/ flower seeds :- (i) (a) Fresh fruits, 10% (a) Packing material, (1) in case of vegetables and namely, LDPE, HDPE, item (c) in flowers. Polypropy lene, column 4, plastic pots, please GRP roof lite sheets, see para 8 of kraft, liner and General Confluting media, grape ditions in guard paper, kraft paper, this tissue paper for Appendix. wrapping peat moss. (b) Sodium Metabi- sulphite(10%). (c) Chemicals appearing in Appendix 3 and used in cultivation/growth of fruits, vegetables and flowers, and freshening chemicals for fruits, vegetables and flowers. (d) Seeds/bulbs/mother plant germ plasm. (e) pearlite horticulture grade and vermiculate. (b) Individually 10% (a) Same as items (a) to (1) Same as quick frozen (e) against Sl. No. remark (1) in vegetables. G.2 (i) (a) above. column 5 against Sl. No. G2 (i) (a) above.

(3) THE goods imported were not cleared on the ground that the in-shell almonds imported by the appellants were not seeds as contemplated by the aforesaid entry in appendix 17. Having been unsuccessful before the customs authorities who had levied a redemption fine of Rs. 6 lakhs and additional penalty of Rs. 50,000.00, the appellants filed a writ petition before the Bombay High Court. The single judge dismissed the petition and an appeal was filed before the division bench. By the impugned judgment, the division bench came to the conclusion that what was imported by the appellants was not seeds. In this connection, the division bench observed as follows:

"THE perusal of items in clause G-3 makes it clear that the materials permitted for import under clause 4 are those which had nexus to the goods which were exported and in respect of which REP licence was granted. Each of the item covered under (a), (b), (c), (d) and (e) leaves no manner of doubt that it had direct nexus or relation to the export product of fruits, vegetables and flowers. Clause (d) under item 4 refers to "seeds/bulbs/mother plant germ plasm". It is obvious that expression "seeds" must be read as referring to seeds of fruits, vegetables and flowers. Mr. Vahanvati submitted that the expression "seeds" is a generic term and it need not have any nexus to the export products under clause 1. It is not possible to accede to the submission of the learned counsel. The contention that once the item imported falls under generic terms "seeds" then, the imported goods are in accordance with the licences cannot be accepted. We will assume for the purposes of this case that seeds of almonds will fall under the generic term "seeds" but that would not entitle the appellants to claim benefit of the licences which have been issued for the purpose of import of items covered under G-2. The expression "seeds" used in item G-2 is obviously not a generic term but circumscribed by limitation contained in the clause itself. The expression "seeds" have a nexus to fresh fruits, vegetables and flowers and such seeds are permitted to be imported provided they are to be used for the purpose of germination or plantation. It is not the claim of the appellants that seeds of almonds are imported for the purpose of germination or plantation. The appellants do not dispute that the seeds of almonds will be sold as dry fruit but claims that once the imported goods fall under the category of "seeds", then, irrespective of the purpose for wh