1998 (9) TMI 95 - HC - Customs

Summary

Issues:
1. Validity of import clearance under OGL for cloves.
2. Consideration of shipment date and public notice date.
3. Violation of principles of natural justice in not providing enquiry report.

Analysis:

Issue 1: Validity of import clearance under OGL for cloves
The petitioner imported cloves under OGL but faced refusal from the Department to clear the goods under OGL. The Department issued a show cause notice alleging lack of a Letter of Credit and absence of a valid license for import. The Additional Collector confiscated the goods, levied a redemption fine, and imposed a personal penalty under the Customs Act, 1962. The petitioner challenged this order through writ petitions.

Issue 2: Consideration of shipment date and public notice date
The petitioner argued that the date of shipment should be the sole criterion for judging the validity of imports. They contended that the Bill of Lading was dated before the public notice that restricted the import of cloves under OGL. The petitioner highlighted that the notification restricting imports was made available to the public after the shipment date, emphasizing the importance of considering the actual dates of events in determining the validity of the import clearance.

Issue 3: Violation of principles of natural justice in not providing enquiry report
The petitioner raised concerns about the violation of natural justice principles as they were not provided with a copy of the enquiry report made by the authorities. They argued that this lack of transparency hindered their ability to respond adequately to the allegations against them. The petitioner emphasized the importance of being informed of the contents of such reports to ensure a fair adjudication process.

In conclusion, the High Court of Judicature at Madras allowed the writ petitions, remanding the matter back to the second respondent for a fresh decision. The Court directed the consideration of the Bill of Lading date and the public notice date in determining the validity of the import clearance under OGL. The Court emphasized the importance of adhering to natural justice principles by providing relevant reports to the concerned parties for a fair adjudication process.