1988 (7) TMI 62 - HC - Customs

Summary

Issues:
1. Import of goods without a license.
2. Confiscation of goods by the Additional Collector of Customs.
3. Rejection of appeal by the Customs, Excise and Gold Control Appellate Tribunal.
4. Ownership of goods and party aggrieved.
5. Refund of the fine paid in foreign exchange.

Analysis:
1. The case involved a Corporation incorporated in West Germany that received a purchase order for industrial sewing machines from an Indian entity. The goods were shipped within the prescribed period but faced delays in document negotiation. The goods arrived in Bombay, but the buyer refused to clear them. The goods were later confiscated by the Additional Collector of Customs for alleged import without a license.

2. The Additional Collector of Customs confiscated the goods and imposed a fine for re-shipment. However, the court found that there was no evidence to support the confiscation under the Customs Act, and the conditions imposed were not legally valid. The order of confiscation was deemed unsustainable.

3. The Customs, Excise and Gold Control Appellate Tribunal rejected the appeal filed by the aggrieved party, citing that the German Supplier did not have the right to appeal. The court disagreed with this decision, emphasizing that the German Supplier, as the owner of the goods, was directly affected and should be considered the party aggrieved under the Customs Act.

4. The court highlighted that the 1st petitioners were the owners of the goods, as evidenced by the bank's certificate. The Tribunal's decision to reject the appeal based on the party aggrieved was deemed incorrect, as the German Supplier had paid the penalty and reshipped the goods, making them personally aggrieved by the order.

5. The court directed respondents to refund the fine paid in foreign exchange by the 1st petitioner, as agreed before the Appeal Court. The orders of the Additional Collector of Customs and the Appellate Tribunal were set aside, and respondents were instructed to pay the costs of the petition. The rule was made absolute accordingly, concluding the legal proceedings in favor of the petitioners.