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Issues:
1. Confiscation of imported goods under Section 111(d) of the Customs Act. 2. Interpretation of import licence conditions and DGTD certificate requirements. 3. Authority of Customs to determine the permissible end-products for imported goods. Analysis: The judgment by the High Court of Bombay involved a case where a petitioner firm imported Polyester Metallised film against an import license issued to another entity. The Customs Authorities issued a show cause notice alleging that the imported goods were not required for the end-product specified in the license, leading to confiscation under Section 111(d) of the Customs Act. The Additional Collector of Customs imposed a fine for redemption of goods, citing that the imported goods were mainly used for manufacturing textile threads, not the specified end-product. The petitioners challenged this decision before the Customs, Excise and Gold (Control) Appellate Tribunal, which dismissed the appeal, emphasizing the need for imported goods to align with actual consumption and end-product requirements. The petitioners argued that the confiscation orders were unsustainable as they were actual users requiring the imported goods for the manufacture of end-products covered by the license. The court agreed, stating that once it is established that the importer is an actual user and the goods are needed for the specified end-products, Customs Authorities cannot question the end-product's alignment with the DGTD certificate. The court rejected the Department's argument that the Customs could insist on goods being used for end-products specified in the certificate, emphasizing that the import license clearly permitted the import of items for manufacturing specified end-products, which the petitioners intended to do. The court determined that Customs Authorities cannot confiscate goods based on assumptions about the end-products not aligning with the DGTD certificate, as long as the imported items are intended for the end-products mentioned in the license. Therefore, the court found the orders of confiscation by the lower authorities unsustainable and set them aside, ruling in favor of the petitioners. The court directed the discharge of the bank guarantee and issuance of the detention certificate, as the goods were permitted to be cleared by interim order.
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