1998 (11) TMI 128 - HC - Customs

Summary

Issues:
1. Maintainability of writ petition under Article 226 of the Constitution of India.
2. Requirement of a license for the import of a Water Scooter under the Foreign Trade (Development and Regulation) Act, 1992.
3. Classification of Water Scooter as "personal and household effects" under Baggage Rules, 1994.

Issue 1: The judgment addresses the maintainability of the writ petition under Article 226 of the Constitution of India. The Standing Counsel for the Department argued that the writ petition is not maintainable as the appellate and revisional authorities had examined the impugned fine order. However, the court held that legal questions regarding the applicability of relevant rules were raised, making the writ petition maintainable.

Issue 2: The court considered whether the import of a Water Scooter required a license under the Foreign Trade (Development and Regulation) Act, 1992. It was noted that Paragraph 156J(2) of the Exim Policy prohibits the import of water transport crafts without a license. The petitioner claimed exemption under Baggage Rules, 1994, but the court ruled that the Baggage Rules do not override the requirement for a license under the Foreign Trade Act, concluding that the import of the Water Scooter necessitated a license.

Issue 3: The judgment also delved into the classification of the Water Scooter as "personal and household effects" under Baggage Rules, 1994. The court found that the Water Scooter, being a pleasure craft used for joy-riding, did not qualify as a personal effect under the Baggage Rules. Additionally, the petitioner failed to provide evidence of the Water Scooter being in personal use abroad for the minimum required period. Consequently, the court upheld the authorities' decision that the Water Scooter did not fall under the category of personal and household effects exempt from duty.

In conclusion, the court dismissed the original petition, upholding the authorities' decision that the import of the Water Scooter required a license under the Foreign Trade Act and did not qualify as personal and household effects under the Baggage Rules.