UNION OF INDIA vs TARACHAND GUPTA & BROS.

The Supreme Court held that under Clause 3 of the Imports (Control) Order, 1955, and Section 3 of the Imports and Exports (Control) Act, 1947, the mere fact that imported goods could be assembled into motor-cycles and scooters in C.K.D. condition does not constitute a breach of the license under Entry 295. The Court clarified that the restriction on importing motor-cycles and scooters in C.K.D. condition applies only to those holding a license under Entry 294, which permits complete and assembled imports. The appeal was allowed, overturning the lower court's dismissal of the suit based on time limitation and prior case law.