1997 (2) TMI 129 - HC - Customs

Summary

Issues Involved:
The judgment involves the cancellation of the 'Out of Customs charge' Order under Section 47 of the Customs Act, 1962, and the validity of such cancellation.

R.C. 13 of 1985:
The applicants imported 1000 MT of Nickel, leading to disputes under Open General Licence. The Deputy Collector of Customs allowed clearance after confiscation and payment of fine. The applicants obtained an 'Out of Charge' order under Section 47. Upon inspection, damages were found, and a claim for refund was filed under Section 13. The claim was rejected by authorities and appeals, leading to a reference to the Tribunal and subsequently to the High Court.

R.C. 14 of 1985:
Similar to the previous case, the applicants imported 1000 MT of Nickel, faced disputes under Open General Licence, and obtained an 'Out of Charge' order. Damages were discovered, leading to a refund claim under Section 13, which was rejected by authorities and appeals, resulting in a reference to the Tribunal and the High Court.

The counsel for the applicants argued against the cancellation of the 'Out of Charge' order, emphasizing the lack of authority to revoke or cancel such an order. The Department defended its position, supported by lower authorities and the Tribunal. The High Court considered the nature of the order under Section 47 and the authority to review or cancel such orders.

The High Court analyzed the relevant sections of the Customs Act, including Section 47, Section 154, and Section 129D. It highlighted the quasi-judicial nature of the power exercised under Section 47 and the consequences of such orders on rights and obligations. The Court concluded that the proper officer lacked the authority to cancel the 'Out of Charge' order once issued under Section 47, rendering the subsequent cancellation as null and void in the eyes of the law.

In conclusion, the High Court held that the cancellation of the 'Out of Customs charge' order under Section 47 of the Customs Act, 1962, was not valid based on the facts and circumstances of the case.