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Issues involved: Quashing of show cause notices u/s 28 and 124 of the Customs Act, 1962 by the Delhi High Court based on the import of RBD Palm Oil in stainless steel containers under Open General Licence.
Summary: The appeal was against the Delhi High Court's judgment quashing show cause notices u/s 28 and 124 of the Customs Act, 1962, issued to the respondent-Company for importing RBD Palm Oil in stainless steel containers under Open General Licence from Singapore. The High Court held that the international practice of importing edible oil in stainless steel containers did not violate any conditions of exemption, and the containers were not subject to separate duty. It further ruled that the goods had been cleared under Section 47 of the Customs Act, and since there was no fraud or deliberate suppression, the notices were contrary to law and were quashed. Upon review, the Supreme Court agreed with the High Court's findings that the import of edible oil in stainless steel containers was in line with international marketing practice. It affirmed that there was no short levy of duty as the containers were not liable for separate duty, and duty had already been paid on the RBD Palm Oil. The Court concurred that the containers were not subject to confiscation under Section 111(d), (m) of the Customs Act, making the show cause notice u/s 124 illegal and rightly quashed. Regarding the interpretation of Sections 28 and 47 of the Customs Act, the Supreme Court did not express any opinion and left the question open. Ultimately, the Court upheld the High Court's decision to quash the show cause notices u/s 28 and 124, dismissing the appeal and directing the release of goods to the respondent without any costs awarded.
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