K.G. Hegde, Member (J)

1. This appeal arises under the following circumstances. The Respondent M/s. K. Hargovindas Co. Exports Pvt. Ltd. imported 995 bags of Skim Milk Powder valued at Rs. 1,07,3147- c.i.f. and sought clearance against Licence No. 2796882 dated 11-8-77. The licence in question was an 'INITIAL LICENCE' issued to the manufacturing exporters for raw materials, components, consumer stores, in accordance with para 106(1) of Part C, Section 1 of Red Book, Volume 2 for 1977-78. The said licence was issued to build up stock. The licence did not indicate the export product. The Customs authorities objected for the clearance on the ground that as per paragraph 106(1) (C) the import is permissible only against exports of specified product but the goods imported, viz., skim milk powder was listed at serial No. 47 of the List at Annexure II to Part B of the Policy Book, Vol.11, A.M. 1978 and the licence produced was not valid against clearance of the goods in question. The respondent sent a reply inter alia contending that the interpretation placed by the Customs authorities was erroneous. The Collector of Customs, Bombay who held the enquiry did not accept the contention