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1991 (6) TMI 75

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..... the facts in great detail as the fact of import under the licence dated December 5,1990 is not in dispute. 2. The petitioner has secured licence dated December 5,1990 by transfer. The licence enables the actual users to import goods as per Paras 220(2) and 220(1) of Policy of AM 1990-93 of Policy Book subject to conditions stipulated in Paras 220 13 ID. In pursuance of this import licence the petitioner imported cloves and filed Bill of Entry on March 11,1991. The petitioner complains that the respondents are withholding the clearance of the said goods on the ground that the import is not valid. 3. As several petitions are filed by the importers of cloves, we felt that it is desirable that one of the petitions should be finally disposed .....

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..... ion "clove" set out in pharmaceutical books to ascertain whether clove should be treated as 'drug or drug intermediates' for the purpose of import in accordance with the Import Policy. Shri Vyas submitted, and in our judgment with considerable merit that the proper test to be applied is to ascertain as to how the item is known in the market dealing in cloves. It is impossible to imagine that the person who wants to buy cloves would go to a drug store. In our judgment it is impossible to suggest that the cloves are drugs or drug intermediates. It is possible that cloves may be one of the ingredients for manufacture of some of the drugs but that cannot lead to the conclusion that cloves by themselves are the drugs or drug intermediates. In ou .....

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..... rts Exports thereupon issued directions on March 27,1991 to the effect that such clearances are not permissible under additional and REP licences and the specific licence is required for import of cloves. Shri Mehta submitted that inspite of the earlier public notice of the year 1988 the import of cloves was permitted without a specific licence as contemplated under Paragraph 167 of Chapter XIII of the Policy. Merely because the Customs Authorities at Bombay and Madras permitted such clearances that cannot confer right upon the importers to claim that import of cloves does not require a specific licence under Paragraph 167. Shri Mehta also referred to the public notice dated December 14,1990 and urged that where the item falls within th .....

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