9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 1076 - HC - CustomsValidity of import licence - power of DGFT - Commissioner held that DGFT has no powers to issue import licence to validate as imports made in past and as such, the import licence is invalid - Tribunal reversed the findings of the commissioner - appellant are engaged in the business of distribution of Satellite channels in India imported de-coders of model CDE 2002 -BMAC not sure as to be freely importable or required licence wrote DGFT for clarification - Held that - it is not disputed that on 11-2-1995, the importer sought clarification from the DGFT as to the necessity of possessing the import licence. Concededly, the DGFT clarified that no such import licence was required. On that understanding, the goods in question were imported. It is not in dispute that the goods were cleared after they were classified under Heading 8528, in tune with the Supreme Court s judgment in Commissioner of Customs, New Delhi v. C-Net Communication (I) Pvt. Ltd., 2007 (9) TMI 15 - Supreme court of India . In these circumstances, the insistence of the Customs authorities that they should have their pound of flesh despite the fact that the culpability of the importer is not apparent, seems to this Court, an insistence on hyper technicalities with a view to asserting power. In effect what the Customs authorities are contending is that they do not agree with the issuance of licence by the DGFT which covered the said import, and that they could still treat the goods as invalidly brought in and take punitive action. Having regard to the totality of facts and circumstances, this Court is of the opinion that no question of law arises for consideration. - Decided against Revenue.
Issues:
1. Validity of import licence issued by DGFT. 2. Interpretation of Customs Act provisions. 3. Discrepancy between DGFT clarification and Customs Department's actions. Issue 1: Validity of import licence issued by DGFT The case involves a dispute over the validity of an import licence issued by the Directorate General of Foreign Trade (DGFT). The appellant, the Department of Customs, challenged the Central Excise and Sales Tax Appellate Tribunal's decision, claiming that the import licence produced by the importer after importing goods was invalid. The Tribunal found that the importer had sought clarification from DGFT before importation and that the goods were allowed to be cleared against an ITC bond and bank guarantee. The Tribunal concluded that once the import licence specifically covering the goods was issued by DGFT, the Customs Department could not challenge its validity. The Tribunal set aside the Customs Department's decision and allowed the importer's appeal with consequential relief. Issue 2: Interpretation of Customs Act provisions The Customs Department contended that despite the DGFT's issuance of a licence covering the imported goods, they should be allowed to challenge its validity based on Section 3(3) of the Foreign Trade (Development and Regulation) Act, 1992. The Customs Department argued that they should have the authority to take further action even if a licence was issued after importation. However, the Court noted that the importer had sought clarification from DGFT regarding the necessity of an import licence, which was confirmed not to be required. The goods were cleared under a specific classification, and the Court found the Customs Department's insistence on challenging the licence issuance as an assertion of power based on technicalities rather than a clear culpability on the importer's part. The Court dismissed the appeal, stating that no legal question arose for consideration. Issue 3: Discrepancy between DGFT clarification and Customs Department's actions The Court highlighted the discrepancy between the DGFT's clarification that no import licence was required and the Customs Department's insistence on an import licence even after the goods were cleared. The Court found that the Customs Department's actions seemed to challenge the DGFT's authority to issue licences and take punitive action against the importer. Despite the importer's compliance with the DGFT's clarification and the clearance of goods under the relevant classification, the Customs Department persisted in asserting its power. The Court concluded that, considering all facts and circumstances, there was no legal basis for the Customs Department's actions and dismissed the appeal accordingly.
|
