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TMI Blog1997 (10) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... nd (m) of the Customs Act. He therefore imposed a fine of Rs. 50,000/- and a penalty of Rs. 10,000/-. The said order was confirmed by, as stated earlier by the Collector of Customs (Appeals). The goods are known as Star Aniseed otherwise known as Badiyan Khatal (fruit). Prior to 1992 i.e. for the period between 1990-93 the import of the said material has been rendered by Appendix 6, List 4 which itemised list of Crude Drugs. This item is found in Item 35 thereof. In 1992 when the Exim Policy changed the goods not under Negative Import reflecting under Chapter XV but under restricted items, paragraph 156 thereof. When the goods came in September, 1992 it was claimed by the Appellant that it comes under OGL as per past practice. He also state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Entry filed before the Customs House. He also cited 3 case laws. He relied on the judgment of the Eastern Bench of the Tribunal, Sobjith Enterprises v. Assistant Collector of Customs - 1993 (63) E.L.T. 119, Radheshyam Ratanlal v. Collector of Customs, Madras - 1994 (72) E.L.T. 910 SRB Division Bench. The Bombay High Court in the case of R.K. Chemicals v. Union of India - 1993 (67) E.L.T. 79, he specifically emphasise the fact that the Division Bench of the Bombay High Court had held that how the imported goods would be used after clearance by the importer cannot be looked into by the Customs authorities. He tried to emphasise the fact that Bombay High Court decision referred above is definitely in his favour. 3. As against this Shri C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... items shall be freely importable in law, they may be regarded as `consumer goods . In Item 11 which reads as under : Crude drugs required for making ayurvedic and unani medicines . The argument of Shri Kantawala is that no actual user condition is contained in the Policy. But when we see the words used in Paragraph 11 of the Policy which says specifically, required for making ayurvedic and unani medicines means the use of imported material is required in that. It has been rightly argued by Mr. Rao that nowhere did the Appellants represent that they were using it for making ayurvedic or unani medicines. In fact Mr. Kantawala, ld. Counsel, candid in admitting that his client was only a trader. Past practice, rightly it has been argued th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable provided the goods imported are used in the leather industry and there is nothing on record to indicate that the petitioners were going to use it in leather industry. The submission is entirely misconceived because at the stage of clearance of the goods from the Customs barrier, it is not for the Customs authorities to examine as to how the goods will be used. In case, subsequently, the Customs authorities felt that the goods are not used in the leather industry then it is always open for the respondents to adopt appropriate proceedings to recover duty which was not recovered because of the exemption notification. In our judgment, the action of the Department in not clearing the goods was entirely misconceived and the petitioners ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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