9911796707
TMI Blog1987 (5) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs Tariff Act, 1975, provided :- (i) the materials in question are required to be imported for the purpose of manufacture of goods for execution of one or more export orders, or (ii) the materials which are for replenishment of materials used in manufacture of goods exported in execution of one or more export orders. The said notification also laid down certain conditions, for claiming exemption.2. In pursuance to this scheme the petitioner secured the requisite Advance Licences, and importing 100% polyster fabrics, as well as foreign made zips with the said material, the petitioner manufactured the garments for export. On 11-6-1986, a shipping Bill No. 562 was filed by the company through M/s Triways (Pvt.) Ltd. for the export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that though ladies garments of consignments were made of 100 per cent polyster but the zip fasteners used in them were mostly of Indian origin. In his subsequent statement he also admitted that the cargo covered by the abovesaid bills consisted of readymade garments of 100% polyster and 100% cotton fabrics and zip fasteners used in them were mixed i.e. of Indian and foreign origin. 4. Shri Arun Kakkar on demand could not give satisfactory explanation regarding the misdeclaration of cargo being exported/attempted to be exported and as such all the goods under the above bills were seized under Section 110 of the Customs Act, 1962 against proper Panchnama on the reasonable belief that the same were liable to confiscation under the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the course of hearing, the learned counsel laid stress on the ground that the impugned order being punitive in nature is liable to be quashed. The submission is that neither the company nor the detenu holds any other import/export licence or Advance Licence. He is also not engaged in any other business of import or export. Except for the four consignments in question, which are lying under seizure, there had never been any previous export under the DEEC Scheme. The whole lot of foreign material, imported under the Advance Licence lying seized, the detenu cannot re-export the same or any further consignments of polyster fabrics. Learned counsel further submits that it is within the power of the respondents through its various licencing aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not been cancelled and the detenu can still indulge in smuggling activities through some other modus operandi. In order to prevent him from indulging in prejudicial activities in future, the detaining authority was justified in passing the impugned order. The subjective satisfaction of the detaining authority cannot be called in question. On the second aspect, the submission is that the detenu was supplied with the copies of the documents relied upon by the detaining authority in forming his subjective satisfaction, within 5 days of his detention. Copies of some of the remaining documents were handed over to the detenu immediately after he made the representation. The provisions of Article 22(5) of the Constitution of India have been duly c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the business premises of the company and the residential premises of the petitioner, the relevant documents, including the Advance Licences have been taken into possession. 11. The fact remains that the detenu does not hold any other Advance Licence under which he can import any consignment of polyester fabrics or zip fastners. Except for the consignment in question which is lying under seizure, there has never been any previous import or export of any consignment under the DEEC Scheme, The grounds of detention do not reveal that the detenu had at any time engaged himself in any other smuggling activities. In fact, now he cannot do so unless and until the various licensing authorities grant him future Advance Licences under the DEEC Sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the concerned authorities but the fact remains that it has exhausted itself and no new licence has been granted. His future prospects for import of the item are doomed for ever. In this situation, the order of detention is completely punitive and seeks to punish the detenu for the alleged irregularities committed in respect of Advance Licences and not to prevent him from engaging in any further illegal activities. 13. It is not disputed that the Department of Customs has already filed the prosecution in the Court of the Metropolitan Magistrate for which a show cause notice has already been issued. This in fact is the right course which the Department should have adopted from the very beginning. The detention of the detenu, in the giv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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