2008 (9) TMI 164 - HC - Customs

Government effected change in its import policy (effected in April, 1983), as a result of which import of Generators was banned import licence issued (in January 1983) was subject to the condition that on date on which the goods imported, the import of the goods should be in accordance with law in force on the date of the arrival. - admittedly the goods arrived on September 1983 and as per the law in force on that date import of those goods was banned - seizure and confiscation is justified

Summary

Issues:
1. Interpretation of Customs Act regarding unauthorized imports
2. Applicability of Import Policy AM 84
3. Validity of imports made before policy change
4. Retrospective effect of policy provisions
5. Interpretation of policy provisions in favor of applicant

Analysis:

Issue 1: Interpretation of Customs Act regarding unauthorized imports
The Tribunal held the imports made by the Applicant as unauthorized under Section 111(d) of the Customs Act. The High Court affirmed this decision based on the change in policy banning the import of the goods in question, which was in force when the goods arrived in India port. The import license granted to the Applicant was subject to the condition that the import of goods should be in accordance with the law in force on the date of arrival.

Issue 2: Applicability of Import Policy AM 84
The key question was whether the Import Policy AM 84, announced on 15th April 1983, could be applied with effect from 1st April 1983. The Applicant argued that their import, made pursuant to a contract in February 1983 and under a Letter of Credit opened on 13th April 1983, should be covered under the AM 84 Policy. However, the Tribunal and the High Court found that the change in policy banning the import of the goods was in force when the goods arrived, making the imports unauthorized.

Issue 3: Validity of imports made before policy change
The Applicant's imports were made before the change in policy in April 1983, but the High Court emphasized that the crucial factor was the policy in force when the goods arrived in India port. The High Court concluded that the import of goods banned under the new policy could not be faulted, leading to the confiscation of the goods and imposition of penalties.

Issue 4: Retrospective effect of policy provisions
The High Court addressed whether the provisions of para 255(1) of AM 84 Policy could have retrospective effect. The Court's analysis focused on the conditions of the import license and the law in force at the time of goods' arrival, ultimately supporting the authority's decision to seize and confiscate the goods based on the ban under the new policy.

Issue 5: Interpretation of policy provisions in favor of applicant
The High Court considered whether, when interpreting the provisions of the Policy, the interpretation beneficial to the Applicant should have been favored. However, the Court's decision was based on the law in force at the time of arrival of the goods, leading to the affirmation of the confiscation and penalties imposed.

In conclusion, the High Court upheld the decision regarding the unauthorized imports based on the change in policy banning the goods in question, emphasizing the importance of compliance with the law in force at the time of importation.