1995 (1) TMI 219 - AT - Customs

Summary

Issues:
1. Interpretation of provisions of Customs Act, 1962 regarding import entitlement under Additional Licence.
2. Effect of subsequent policy changes on import entitlement under Additional Licence.
3. Conflict of views between Tribunal members on legal interpretation.

Analysis:
1. The case involved the interpretation of provisions of the Customs Act, 1962 regarding import entitlement under an Additional Licence issued during a specific policy period. The dispute arose when the Respondent Importer, holding an Export House Additional Licence, imported an item after it was removed from the Open General Licence through a Public Notice. The Collector of Customs deemed the import unauthorized, leading to adjudication proceedings. The Tribunal considered the applicability of para 255(3) of the Policy Book AM 1983-84 to determine the importer's eligibility post the policy change.

2. The Tribunal deliberated on the impact of subsequent policy changes on import entitlement under the Additional Licence. The majority view, supported by the President of CEGAT, emphasized the need to consider the policy as amended, citing precedents like East India Commercial Co. Ltd. v. Collector of Customs. The dissenting view, based on the judgment in Jayant Vegoils case, argued that the importers' entitlement remained unaffected by subsequent policy changes, as per para 255 of the Policy Book AM 1983-84. This conflict of views led to the reference to the High Court for clarification.

3. The Tribunal acknowledged the disagreement between its members on the interpretation of the Policy provisions and the impact of policy amendments through Public Notices. While the majority followed the Jayant Vegoils judgment, the dissenting member's reliance on technical aspects necessitated a reference to the High Court for resolution. The Tribunal recognized the need for judicial scrutiny of conflicting interpretations and concluded that a legal issue meriting High Court intervention existed, warranting the reference.

Conclusion:
The Tribunal granted the department's prayer for reference to the High Court on the legal issues raised in the formulated questions, focusing on the interpretation of the Customs Act provisions and the effect of subsequent policy changes on import entitlement under the Additional Licence. The Registry was directed to prepare a statement for the High Court's consideration, limited to the second question regarding the impact of policy amendments on import entitlement.