9911796707
|
Home
Issues:
1. Validity of import licences and goods clearance. 2. Effect of licence cancellation on imported goods. 3. Application of legal principles from previous judgments. Issue 1: Validity of import licences and goods clearance: The appellant, a proprietor of a textile firm, had applied for advance licences to import polyester filament yarn and polyester partially oriented for export purposes. The licensing authority issued three licences between 1992 and 1994. The appellant imported the goods under these licences without duty payment, claiming exemption under Notification 204/92. However, Customs authorities alleged manipulation in export documents and proposed to suspend the licences. Subsequently, the Deputy Director General of Foreign Trade cancelled the licences in 1995. On appeal, the cancellation was set aside in 1998 due to procedural irregularities, but no fresh notice was issued. The appellant argued that the licences remained valid as of the present. Issue 2: Effect of licence cancellation on imported goods: Following licence cancellation, Customs demanded duty on the imported goods and proposed confiscation and penalties. The Commissioner confirmed duty demand, ordered confiscation with redemption on fine payment, and imposed penalties. The appellant contended that the cancellation of licences did not affect goods imported before the cancellation, citing legal precedents to support the argument that the licences remained valid despite the cancellation order. Issue 3: Application of legal principles from previous judgments: The appellant relied on the Supreme Court's judgment in East India Commercial Co. Ltd. v. C.C., Calcutta to argue that licence cancellation only takes effect upon issuance, and imports made before cancellation remain valid. The departmental representative cited judgments from the Madras High Court, Bombay High Court, and Tribunal decisions to support the contention that fraudulent practices could render a licence void ab initio. However, the Tribunal held that in the absence of forgery or fraud, the licences in question were validly issued, and the imported goods were lawful. In conclusion, the Tribunal allowed the appeal, setting aside the impugned order and affirming the validity of the imported goods under the licences issued to the appellant.
|
