1985 (6) TMI 131 - AT - Central Excise

Summary

Issues:
Validity of import license for the consignment of Hydrogen Compressors with Motors and spares; Confiscation of goods by Collector of Customs; Appeal to the Board against the Collector's decision; Revision application filed before the Government of India; Applicability of Public Notice 53/78 on the import license; Interpretation of licensing period and conditions.

Analysis:
The case involves a dispute over the validity of an import license for a consignment of Hydrogen Compressors with Motors and spares. The Collector of Customs held an enquiry and ordered confiscation of the goods but allowed redemption on payment of a fine. The appellants appealed to the Board, which upheld the confiscation but reduced the fine. Feeling aggrieved, the appellants filed a revision application before the Government of India, which was considered as an appeal by the tribunal.

During the appeal hearing, the appellant's representative argued that the license was valid for the import as per the provisions of the policy and Public Notice. The Departmental Representative contended that the license was issued for components required for the manufacture of the appellants' end product, which did not align with the imported compressors.

The main question for consideration was whether the license was valid for the import in question. The tribunal analyzed the licensing period, the provisions of the policy, and the impact of Public Notice 53/78 on the license. The tribunal referred to the Hand Book of Imports-Export Procedures and concluded that the import was unauthorized due to the Public Notice issued after the license date.

The tribunal held that Public Notice 53/78 did not govern the license in question as it was issued after the license date. Citing a Supreme Court decision, the tribunal emphasized that amendments made after the license issuance date are not applicable. Therefore, the tribunal found the Collector and the Board's decision invalid and remanded the matter to the Collector of Customs for fresh consideration.

Consequently, the tribunal allowed the appeal, set aside the orders of confiscation and fine, and remanded the matter to the Collector of Customs for a fresh review based on the observations in the tribunal's order.