Per Shri V.P. Gulati : This appeal is against the order of the Collector of Customs (Appeals), Madras. Under the impugned order, the lower appellate authority has confiscated Duracell Dry Cell Batteries holding the same as consumer goods covered by Negative list under the import policy 1992-1997 requiring import licence for the same. The appellants admittedly did not have any import licence and they sought clearance of goods under Open General Licence (OGL).

2. The learned Consultant for the appellants pleaded while considering that the goods imported are consumer items, that the practice in the Customs House to allow import of consumer items in the light of the clarification given by the CCI&E vide his letter dated 25..5.92. copy of which has been filed in the paper book. Para 2 of the said letter is reproduced below :-

"It is hereby clarified that as per Export and Import Policy, 1992-97, the items allowed earlier under OGL or against Exim scrips are allowed to be imported freely without a licence. Licence is required only in respect of specified items included in the Negative list of imports incorporated in the Export and Import Policy, 1992-97. Hence the items not included in the Negative list of Imports may be permitted freely without a licence especially those items which had been shifted earlier from the Restricted List (Appendix2.G) to Appendix 3 (Part a and 6) as OGL as the case may be, prior to the announcement of new policy. It may be further stated that the Buttons, snap and zip fasteners are freely importable without licence and would not be treated as consumer items falling within the scope of Negative list of Imports of the current Export and export policy."

It is seen that clarification has been given in the context of import of Buttons, snap and zip fasteners under the import policy 1992-97. The learned consultant pleaded that the import of this letter is that while it clarifies that import licence will be required for import of items under the Negative list of the policy for the year 1992-97 such of those items which were earlier shifted from the restricted list of Appendix 2 in the earlier policy to Appendix 3 Part A and 6 before the announcement of the new policy, could still be imported under OGL. He in this connection pointed out that batteries imported by the appellants figure at serial No. 597 of Appendix 3 of Part A and by virtue of this clarification the goods should therefore be allowed import. He pleaded that as per para 20 of the import policy for 1992-97 if any question or doubt in respect of any provisions contained in the policy, the decision of the DGPT on such question or doubt shall be final. He pleaded that based on this clarification of the CCI&E, the Customs authorities were allowing import of consumer goods and referred us to the order of the Additional Collector of Customs. Madras, bearing No. SIB/20/94 - S8/89/94 SIB dated 25.3.94. He pleaded that in the order of the Additional Collector referred to supra, the Additional Collector while dealing with the case of importation of speaker systems has taken note of the clarification given by the CCI&E by his letter F.No. 48 (20)/ 92-97/IPC dated 15.5.92 and has also taken note of the fact that the practice in the Customs House was to allow clearance of such speaker systems used in the Cinematographic Projector.

He pleaded that this circular was obviously acted upon by the authorities and based on this clarification consumer goods which appear in Appendix 3 and not specifically mentioned in the Negative lists were being allowed import. He pleaded that it was only much letter by another circular the licensing authorities by superseding their earlier clarification clarified that no consumer goods could be allowed clearance irrespective of the fact that in the earlier policy they were covered by Appendix 3. He pleaded that the appellants" importation was made during the period when this superseding clarification had not been given. He, . therefo