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1988 (5) TMI 50 - SC - Customs


Issues:
1. Interpretation of Import Policy of 1980-81.
2. Whether coconut oil import was canalized.
3. Authority of Collector to take a contrary view.
4. Breach of natural justice in the Collector's order.

Interpretation of Import Policy of 1980-81:
The case involved appeals against a full Bench judgment of the Delhi High Court concerning the import of coconut oil. The appellants, a Company and its Managing Director, imported industrial coconut oil under specific licenses. Disputes arose when the Collector of Customs alleged that the import was illegal due to canalization. The High Court determined that the Import Policy of 1980-81 applied to the case as the licenses were issued during that period. The Collector's rejection of the plea regarding the import policy conditions was upheld.

Canalization of Coconut Oil Import:
The main issue was whether coconut oil import was canalized through the State Trading Corporation (STC). The judgment analyzed Rule 3 of the Imports (Control) Order, 1955 and Para 5 of Appendix 9 of the Import Policy. The Court concluded that all varieties of coconut oil, including industrial, were covered under the term "coconut oil" in the Import Policy. The argument that edible coconut oil alone was canalized through STC was dismissed, emphasizing that broader aspects must be considered for interpretation.

Authority of Collector to Take Contrary View:
The appellants contended that the Collector should have followed decisions of higher authorities, such as the Central Board and Central Government. The judgment clarified that while lower authorities are generally bound by higher decisions, the focus should be on determining the correct legal position. The Court highlighted that the quasi-judicial decision ceased to be relevant once it was established that all varieties of coconut oil were included in the Import Policy.

Breach of Natural Justice in Collector's Order:
Lastly, the appellants raised concerns about breach of natural justice and external pressure in the Collector's order. The Court found no breach in the statutory procedure and rejected the argument that the involvement of certain individuals vitiated the order. It emphasized that the rules of natural justice supplement the law and do not depend on the stakes involved. Ultimately, all contentions were dismissed, and the appeals were rejected, with costs awarded to the respondents.

 

 

 

 

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