9911796707
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Issues:
- Interpretation of Import Policy and Hand Book of Import-Export Procedures. - Validity of non-transferable additional license and letter of authority. - Date of issuance of the letter of authority. - Confiscation and fine imposed by the Additional Collector. - Applicability of restrictions on Export Houses for appointing agents and issuing letter of authority. Interpretation of Import Policy and Hand Book of Import-Export Procedures: The case involved the interpretation of the Import Policy and Hand Book of Import-Export Procedures regarding the issuance of letters of authority by Export Houses against non-transferable additional licenses. The appellants argued that the facility available under the policy of a particular year cannot be withdrawn by subsequent policies. Citing a Bombay High Court decision, they contended that the right to import goods is linked to the manner of importing goods under the relevant year's Import Policy. The Tribunal agreed with this interpretation and held that the restrictions introduced in a subsequent policy do not apply retrospectively. Validity of non-transferable additional license and letter of authority: The dispute centered around the validity of the non-transferable additional license and the letter of authority issued to the appellants. The Customs objected to the clearance, citing para 383(2) of the Hand Book of Import-Export Procedures 1983, which prohibited Export Houses from appointing agents or issuing letters of authority against non-transferable licenses. The appellants argued that such restrictions were not in place during the relevant policy period (AM 82) and relied on evidence to support the issuance of the letter of authority. Date of issuance of the letter of authority: A key point of contention was the date of issuance of the letter of authority. The Department claimed it was issued on 10-9-1982, while the appellants contended it was issued on 29-3-1982. The appellants presented a certificate from the bank confirming the issuance of a letter of credit on 31-8-1982 against the import license and the letter of authority dated 29-3-1982. The Tribunal noted that even if the letter of authority was issued on 10-9-1982, the import should not be objected to based on the applicable policy provisions. Confiscation and fine imposed by the Additional Collector: The Additional Collector had ordered confiscation of the goods but allowed redemption on payment of a fine of Rs. 2,40,000, approximately 50% of the CIF value. The appellants argued that any breach, if at all, was technical and did not warrant such a significant fine. The Tribunal, based on the interpretation of the policy provisions and the High Court decision, found in favor of the appellants and set aside the order of the Additional Collector. Applicability of restrictions on Export Houses: The case also dealt with whether the restrictions on Export Houses for appointing agents and issuing letters of authority against non-transferable additional licenses applied to the import in question. The Tribunal, following the precedent set by the Bombay High Court, concluded that the restrictions introduced in a subsequent policy did not impact imports made during the relevant policy period. The Tribunal allowed the appeal, directing that the appellants be granted consequential relief.
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