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2003 (9) TMI 680 - HC - Customs

Issues:
Challenge to the action of respondents in insisting a valid import license for goods clearance.

Analysis:
The petitioners, a company incorporated under the Companies Act, 1956, and one of its directors, challenged the respondents' action of requiring a valid import license for clearing goods covered by a Bill of Entry. The petitioners held a Small Scale Industries Registration license and sought to import marble/granite as regular importers. They claimed entitlement to import under the Import Policy AM-78 based on specific Transferable Replenishment licenses granted to manufacturer-exporters. The petitioners imported goods under an Import License obtained from another entity, seeking clearance based on a previous judgment's interpretation of the REP license holder's rights to import raw materials. The court granted interim relief, relying on a previous judgment that recognized the transferability of REP licenses for importing raw materials, irrespective of the original licensee's exports.

The court analyzed the license conditions, noting it was valid for importing raw materials required in the license holder's factory under Para 30(1) of the Import Trade Control Policy AM-78. Despite the license condition's wording suggesting only required raw materials could be imported, the court acknowledged the previous judgment allowing the transferee to import goods beyond the original licensee's scope. While expressing reservations about the previous judgment's correctness, the court upheld the petitioner's entitlement to succeed based on the prevailing legal interpretation at the time of import. The court emphasized that the imports could not be deemed illegal due to the existence of the earlier judgment interpreting Clause 30(1) of the Import Trade Control Policy.

In light of the specific circumstances and legal context prevailing at the time of import, the court quashed the respondents' action, allowing the petition and making the Rule absolute without costs. The court refrained from delving into the correctness of the previous judgment's interpretation, leaving the issue open for future consideration in an appropriate case.

 

 

 

 

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