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TMI Blog1989 (2) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- in respect of each Bill of Entry. 2. The brief facts of the case for the purpose of disposal of the appeal can be stated as below: M/s Vandana Enterprises, Bombay imported two consignments of Dodecyl Benzene in the capacity of letter of authority holder of M/s Alam Tanneries Pvt. Ltd. Calcutta. These two consignments were sought to be cleared against six licences issued to M/s Alam Tanneries Pvt. Ltd. The said six licences have been endorsed under the provisions of para 148(2) of the Import Policy 1983-84 and are subjected to the condition that the items as per the list attached to the licences, should be the items which are required by the manufacturer exporter for the production in his unit and the entire production should be exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50,000/- in respect of each Bill of Entry. The said order also imposed penalty of Rs. 25,000/- in respect of each Bill of Entry on the L/A holders and Rs. 1,00,000/- in respect of each B/E on the licence holder M/s. Alam Tanneries. On this order, M/s Vysya Bank Ltd. the appellants in this case, went in appeal before the Collector (Appeals), which was rejected. The present appeal is against that order. 3. Shri Ravindran, Advocate on behalf of the appellants, M/s The Vysya Bank Ltd. contended that they had in all bonafides opened the letter of credit and made remittance against the valid import licences. They cannot be expected to know whether the licences in question were obtained through misrepresentation or the materials were found usag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion may be made by way of directing the authorities to issue detention certificate so that payment of demmurage charges can be averted. 4. Shri Mondal, on behalf of the department, however, contended that the appellants, M/s. Vysya Bank Ltd. came into the picture only on 1-7-1985, when they wanted to get clearance of the goods because they had financed the opening of letter of credit. As per the provisions of the Import Policy, they were given the benefit of clearance; otherwise the goods would have been confiscated absolutely or allowed on a heavier fine. In this case, the fact that the licences are conditional, is not disputed. The condition is that the goods should be used by the manufacturer importer in the production and that condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is also found to have been sustained by the subsequent cancellation order of the licensing authority. Hence the judgment of the Bombay High Court cited by the learned Advocate may not be quite appropriate in this case. A show cause notice has already been issued to the effect that the importers cannot comply with the condition prescribed in the licences-because the material does not find usage in tanning industry. Hence, the validity of the licences produced was objected to by the department because the condition prescribed in the licences could not be complied with by the licence holders. Cancellation of the licences at a subsequent stage was only confirming the initial objection raised by the Customs authorities on the validity of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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