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Appeal against the order of absolute confiscation of goods due to licence cancellation and fraud allegations. Analysis: The case involved an appeal against the order of absolute confiscation of goods by the Collector (Appeals) following the cancellation of the licence held by the importer. The appellants, acting as Letter of Authority holders, filed a Bill of Entry on behalf of the licence holder for the clearance of spare parts of agricultural tractors. The licence was cancelled by the Licensing Authority on grounds of fraud and misrepresentation. The Assistant Collector passed an order confiscating the goods, which was upheld by the Collector (Appeals), leading the appellants to approach the Tribunal challenging the confiscation. The appellants argued that they were not involved in the fraud and acted in good faith as per the Letter of Authority. They contended that the goods were imported under a valid licence, and the subsequent cancellation should not affect the import. They cited a Bombay High Court judgment and an appellate decision where goods were released under similar circumstances. The department argued that the Letter of Authority holders were mere agents and had no authority to dispose of the goods without permission. They emphasized that the conditions of the Letter of Authority prohibited the release of goods to the appellants. The Tribunal, after considering the submissions, highlighted the conditions of the Letter of Authority, which clearly stated that the appellants were agents of the licence holder and the goods belonged to the licence holder. Releasing the goods to the Letter of Authority holders would violate the terms of the Letter of Authority. The Tribunal noted that the issue of the Letter of Authority holder's claim for release of goods had not been adequately addressed by the lower authorities. Therefore, the Tribunal set aside the previous orders and remanded the case back to the Collector (Appeals) for a fresh consideration of the appellants' standing to claim the release of goods and the validity of the confiscation order. The appellants were to be given a reasonable opportunity for a hearing and examination of relevant records before a new decision was made.
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