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TMI Blog1987 (10) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... stuff Corporation. The licence was valid for the imports of goods specified in the list attached to the licence. At the instance of the Original licence an endorsement dated 11-1-1982 came to be made on the licence which permitted import of Camphor and Menthol all grades. On 14 Sep., 82 the original licensee transferred the said REP licence to the appellants for valuable consideration. This transfer was effected as per Paras 140 and 141 of the Import Policy for April/March, 1982. 3. On 23-9-1982 the appellants entered into a contract with the foreign supplier for the supply of Menthol Crystals of the value of Rs. 1,22,407/-. On 24-9-1982 the appellant established an irrevocable letter of credit in favour of the foreign supplier through Ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 50,000/- in lieu of confiscation. It is this order of the Additional Collector that has been challenged in this appeal. 7. Shri J.C. Patel, the appellant s learned Advocate, contended that the licence in question was validly acquired by the appellant for valuable consideration without notice. The licence was valid on the date it was transferred to the appellant, it was also valid on the date by which the appellant entered into contract with the foreign supplier. It was further valid on the date the appellant obtained the irrevocable letter of credit. It was also valid on the date of shipment as well as on the date of arrival of the goods and was also on the date of entering Bill of Entry by the appellant. Shri Patel submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... principles of law of contract applied to issue of the licence under the Act, a licence obtained by fraud is only voidable. It is good till voided in the manner prescribed by law. 9. In Chemi Colour Agency s case the Calcutta High Court relying on the above quoted Supreme Court Judgment also held that the licence obtained by mis-representation does not make it invalid. The Calcutta High Court further held that the suspension and/or cancellation of the licence cannot make importation of the goods invalid inasmuch as when the licence transferred it was a valid licence and the goods were imported the licence was valid and only after importation, the licence had been suspended. The Calcutta High Court went further and held that the Customs Aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to the contention urged by the learned Advocate observes the solicitor said that if this Supreme Court Judgment is not followed in this particular adjudication then it will be tantamount to contempt of Court. I, however, told him that we have obtained Law Ministry s opinion saying that when the licence is cancelled for fraud the licence is treated as void ab initio whereas when the licence is cancelled from the date of issue of the order of cancellation . 12. I also observed that the Supreme Court Judgment was under the Sea Customs Act and for the special circumstance of the particular case in question M/s. Eastern Indian Commercial Co. Ltd., it cannot be generalised as a directive to be observed in this case. 13. In view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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