UNION OF INDIA vs M/S. GODREJ SOAPS PVT. LTD AND ANR.

The Supreme Court held that under the Import Policy 1985-88, an exporter can import items permissible under the policy provided they are also importable at the time of import. The Court clarified that 'canalised' items are those typically imported through public sector agencies, but exceptions can be made for additional licence holders. The appeal by the Union of India was allowed, affirming that the respondents could not clear the goods as they were classified as canalised items, contrary to the High Court's ruling under Article 226.