1983 (11) TMI 311 - AT - Customs

Summary

Issues:
1. Import of Palm Kernel oil in violation of the ban under the Import Policy for 1980-81.
2. Eligibility of Patel Impex as a Letter of Authority holder to import goods against the licence issued to an export house.

Analysis:

Issue 1: Import of Palm Kernel oil in violation of the ban under the Import Policy for 1980-81

The case involved the import of Palm Kernel oil by Patel Impex, which was confiscated by the Collector of Customs under Section 111(d) of the Customs Act, 1962. The Collector imposed a penalty on Patel Impex for unauthorized import. The Collector's order was based on the grounds that the import was not permissible due to the ban on Palm Kernel oil under Import Trade Control Notice No. 48/ITC (PN)/80. The Collector held that Patel Impex, as a Letter of Authority holder, was not entitled to import the banned item under O.G.L. The Collector's decision was challenged by Patel Impex in a revision application before the Central Government under Section 131 of the Customs Act.

The issue was whether the ban imposed by Public Notice No. 48 of 9-12-1980 had retrospective effect on the goods imported by Patel Impex. Patel Impex argued that the ban could not apply retrospectively as per settled legal principles and cited relevant judicial pronouncements to support their contention. The Tribunal analyzed the effect of the amending notice and concluded that the ban did not have retrospective operation. The goods imported by Patel Impex were cleared before the ban came into effect, thus not violating the Import Policy for 1980-81.

Issue 2: Eligibility of Patel Impex as a Letter of Authority holder to import goods against the licence issued to an export house

The second issue revolved around the eligibility of Patel Impex, as a Letter of Authority holder, to import goods against the licence held by an export house. Patel Impex contended that they were entitled to import the goods under para 382 of the Policy for 1980-81 as the export house had issued a Letter of Authority to them. The Departmental Representative acknowledged that this was a question of fact, and if the facts supported Patel Impex's eligibility, they could import the goods. The Collector's order mentioned a letter of authority issued by the export house to Patel Impex, authorizing them to import goods against the licence.

The Tribunal found that Patel Impex was entitled to import the goods as a Letter of Authority holder based on the evidence presented. The Collector's order was set aside, and the appeal by Patel Impex was allowed, emphasizing the eligibility of Patel Impex to import the goods against the licence held by the export house.

In conclusion, the Tribunal ruled in favor of Patel Impex, holding that the import of Palm Kernel oil was not in violation of the ban under the Import Policy for 1980-81 and that Patel Impex was eligible to import the goods as a Letter of Authority holder.