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TMI Blog1998 (10) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... pur of Supranol Green BW Dyes and Acid Green GS Dyes respectively against import licences and DEEC Pass Book, had been rightly held to be in order by the Commissioner (Appeals). The present reference applications have been filed by the Commissioner of Customs, Mumbai seeking the reference to the High Court of the following questions :- 1. Whether the Hon ble Tribunal was right in relying upon the clarification given by Jt. DGFT whereas in terms of Para 20 of the EXIM Policy 1992-97 only DGFT is competent to issue clarification regarding interpretation of Policy. 2. Whether the Hon ble Tribunal was right in ignoring the fact that EXIM Policy has statutory force; the Central Govt. can make amendments in the Policy in the Public Inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tended that where the licences in question had not been issued as per the relevant policy and the limiting factor of quantity in addition to value was not incorporated in the licences, the exemption from duty as per Notification No. 203/92, dated 19-5-1992 as subsequently amended was not admissible and the Tribunal s decision to the contrary has raised questions of law as framed in the application. He pleaded that the reference applications be allowed and a statement of the case drawn up and referred to the High Court. 3. The submissions were resisted by Shri H.R. Shetty, learned Counsel for the respondents. He supported the Tribunal s order which, he stated, were based on a correct appreciation of the legal position involved. Both before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he body of the licence had the effect of making such licences void ab initio for grant of the benefit of duty free clearances for the goods imported against them. 5. We have examined the questions posed for reference to the High Court. As stated in the reference application, the issue decided by the original authority was not actually the importability of the subject goods against the licences produced but the admissibility of exemption under Notification 203/92, dated 19-5-1992 as subsequently amended. It is contended that the benefit of exemption is not admissible as the licence has not been issued as per the Export and Import Policy. The Tribunal has examined this question in paragraphs 10 and 11 of its order and held that the objectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the conditions laid down for import of items figuring in Sensitive List I cannot be raised and when raised, cannot be upheld. 6. We agree with the above reasoning. The opening paragraphs of the notification refers to exemption for materials imported against a value based advance licence issued in terms of Para 49 of Export and Import Policy 1992-97 from duty. The respondents in these cases had made the subject imports against such licences. If the licences did not have incorporated in them quantity as an additional limiting factor, it cannot be said that the licences had not been issued as per the Policy. Even if such limiting factor (quantity) were there, it can only mean that the quantity imported in excess of the limit imposed w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... governing the licences in question had become restrictive/prohibiting and hence, the imports were not covered by the licence and hence not eligible for exemption. Also, as stated earlier the objection was that the licence had been issued without applying the quantity limiting factor and hence it was not valid. This proposition has been rejected by the Tribunal under the order in question and as further observed by us, the effect of applying quantity as a limiting factor would also not be to deprive the entire quantity imported of the benefit of exemption. It could, arguably, be limited to only the excess. No indication is there in the adjudication/assessment order or the present reference about such differential quantity. 7. The question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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