1988 (6) TMI 269

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..... jected to the clearance on the ground that the appellants have contravened one of the conditions of the O.G.L. import, namely, that they had not registered their contract with the Iron Steel Controller, Calcutta within 15 days of entering into the contract with the foreign supplier. 3. The Addl. Collector, who adjudged confiscation and fine in his order, observed that non-registration of the contract was a technical lapse. He held that the importation had been made without cover of a valid I.T.C. licence and therefore the goods liable to confiscation under Section 111(d) of the Customs Act. Having regard to his above finding, he ordered confiscation but allowed redemption on payment of fine of Rs. 28,000/- in lieu of confiscation. Henc .....

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..... considered the submissions made on both the sides and perused the available records. It was not disputed that the firm contract had been entered into with the foreign supplier before the date of Public Notice dated 22-7-1982. This contract was confirmed by the foreign supplier on 12th July, 1982. Thus at the time of entering into contract or on the date of confirmation of the contract the appellants were not required to register their contract with the Iron Steel Controller, Calcutta. This requirement of registration of contract came to be incorporated by Public Notice dated 22-7-1982. According to the Public Notice, the contract had to be registered with the Iron Steel Controller within 15 days of entering into contract with the forei .....

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..... of confiscation. The Addl. Collector seems to think that whenever there is a breach whether trivial or inconsequential there should be confiscation and fine. The law, however, does not require the Addl. Collector to order confiscation for a trivial and inconsequential breach. 8. On consideration of all the aspects, I hold that non-registration of the contract, in the circumstances of the case, was wholly unintentional and having regard to the fact that the contract with the foreign supplier was entered into more than 15 days earlier to the date of Public Notice, even compliance with the Public Notice was difficult and I, therefore, while allowing the appeal and setting aside the order of the Addl. Collector, direct that the appellants b .....

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