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Issues:
- Appeal against orders of Collector of Customs confiscating goods imported under specific licences. - Interpretation of Import and Export Policy regarding goods usage in exported products. - Confiscation of goods under Section 111(d) of the Customs Act, 1962. - Validity of licences and their transferability for import purposes. - Applicability of judicial precedents in similar cases. Analysis: 1. The appeal was filed against the Collector of Customs' orders confirming the confiscation of goods imported by the appellants. The goods, 1100 pcs. of locks, were valued at Rs. 47,792 and sought clearance under specific Import Licence Numbers issued by the Joint Chief Controller of Imports and Exports, Kanpur. The dispute arose as the Department claimed the goods were not usable in exported products, leading to confiscation under Section 111(d) of the Customs Act, 1962. 2. The appellants argued that they purchased transferable licences under the relevant policy, highlighting that Customs Authorities should only verify if the imported goods match the description in the licence. They referenced a Bombay High Court decision to support their stance, emphasizing the absence of restrictions on importing locks under the relevant policy column. 3. The J.D.R. contended that goods imported must be usable in exported products as per the policy, citing specific policy paragraphs. He argued that the locks imported were not suitable for the leather products exported by the appellants, thus violating the policy's intent. 4. The appellants' representative further emphasized the transferability of licences under the policy, stating that the licences were not subject to actual user conditions unless specified otherwise in the policy. 5. The Tribunal analyzed the situation, focusing on whether the goods could be confiscated under the Customs Act. Referring to judicial precedents, including a Bombay High Court decision, the Tribunal concluded that once goods were covered by valid licences, they could not be confiscated based on their usability in exported products. The Tribunal stressed that the Licensing Authority, not Customs Authorities, had the power to cancel licences for misuse, indicating that Customs could not challenge licence grants. The Tribunal also cited another decision to support its stance, emphasizing that Customs Authorities should only verify if imported goods matched the licence description. 6. In light of the above analysis and judicial precedents, the Tribunal allowed the appeal, setting aside the confiscation of the goods. The Tribunal ruled that the Collector's examination should focus on whether the imported goods were covered by the licence, not on their application in goods already exported. Consequently, the confiscation was deemed invalid, granting the appellants consequential relief.
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