9911796707
TMI Blog1988 (6) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... authority holder of the Export House M/s. Garden Silk Mills Pvt. Ltd., imported six consignments of High Impact Polystrene Resin Grade HI 425 totally valued at Rs. 4,82,454/- and sought clearance against the Additional Licence No. N/L 2890623, dated 6-8-1981 issued to M/s. Garden Silk Mills Pvt. Ltd. during the Policy April 1981 - March 1982 (for short AM 82). The Additional licence had the endorsement NOT TRANSFERABLE . The actual import took place during the Policy A.M. 1983 (date of shipment 23 September 1982 Bills of Entry entered on 11th October, 1982.). 2. The Customs objected to the clearance on the ground that the letter of authority had been issued to the appellants on 10-9-1982 and as per para 383 (2) of the Hand Book of Import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he licence holders. He also pointed out that from the Letter of Credit it is seen that the letter of indent was on 30-8-1982. If mere had been no letter of authority the appellants could not have placed indent on 30-8-1982. 4. The next submission of Shri Nankani was that upto the Policy 1983 the facility of appointing agents and issuing letter of authority were available to the Export Houses against their additional licences which are non-transferable. The licence was issued during the Policy 1982 and the Hand Book of Import-Export Procedure 1981-82 did provide for issue of letter of authority as well as appointment of agent even by the Export Houses against their non-transferable additional licences. The said facility which was available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that since import had taken place during the year 1982-83 against the additional licence which is non-transferable the Additional Collector was justified in ordering confiscation and levying the fine. 6. We have considered the submissions made on both the sides and perused the available records. Undisputedly, the licence dated 4-8-81 which was issued to M/s. Garden Silk Mills Pvt. Ltd. was non-transferable additional licence issued during the Policy AM 82. The Hand Book of Import-Export Procedures 1981-82 specifically provides for import through agents vide paragraph 382. It did not place any restriction for issuing letter of authority in respect of additional licences of the Export Houses which are not transferable. Thus, if dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Export House becomes as such entitled to the grant of an additional import licence. If such an additional import licence is available to him, then naturally the procedure which he has to follow for importing goods under the said licence is the one that is prescribed in the Hand Book of Import-Export Procedures for the relevant year. It has also been mentioned above that paragraph 7 of the Hand Book of Import-Export Procedures for 1978-79 permitted such a licence holder to issue letters of authority to persons through whom imports could be made subject, however, to the conditions mentioned in the said paragraph. The right to import certain goods pursuant to the import licence given must necessarily be read in the light of the manner in whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to the date of issue of the letter of authority. According to the Department it was issued on 10-9-1982 and according to the importers it was issued on 29-3-1982. Since the licence was issued during the policy period 1982 and since the procedure of that policy period permitted appointment of agents even if the letter of authority had been issued on 10-9-1982 the import could not be objected having regard to the above judgment of the Bombay High Court. Since this appeal could succeed on this ground alone it is not necessary for us to go into the question as to the date of issue of the letter of authority though much can be said in favour of the importers particularly having regard to the certificate issued by the bank which is an indepen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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