Per Jyoti Balasundaram :

The background of these ROM applications is as follows:

2. In September, 1991 the applicants herein imported goods described in the three bill of entry as "compound alcoholic preparations, namely under proof whisky used only for the manufacture of IMFL - Indian Whisky" and claimed clearance thereof against REP licences issued prior to 06.12.1990; the commercial invoices issued by the supplier described the goods in identical terms. The REP licences were valid for import of items covered in Appendix 3-A items in terms of entry No. 218 of Appendix 3-A of Import Policy 1990-93 which covered "ethyl alcohol". In the alternative it was claimed that the goods were covered by the residuary entry at serial No. 524 of Appendix 3-A which covered "chemical and allied items other those listed in Appendix 2, 5 and 6". The department objected to the imports on the ground that the goods were "concentrates of alcoholic beverages" covered by serial No. 31 of Appendix 2B of the Policy and hence the REP licence did not cover the goods.

3. Show cause notice dated 12.12.1991 was issued proposing confiscation of the goods under Section 111 (d) and proposing penal action under S