9911796707
TMI Blog1992 (7) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... etc. to be used in the export products. An advance licence was issued to the petitioner with an attached list showing the items allowed to be exported. The advance licence along with the duty exemption entitlement certificate was received by the petitioner on or about 5th May, 1992. 2. The petitioner had earlier entered into a contract for supply of leather jackets to M/s. Chico Diefusion of 9 Rue Duppies, 75003 Paris, France. The importer opened an irrevocable letter of credit bearing No. D.O.109/024/340 dated 1-4-1992 through the Bank Society De Banque Suisee Swiss Bank of Corporation, Geneva - TLX 42235 to Allahabad Bank International Branch, Calcutta. According to the terms and conditions of the letter of credit the goods were to be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and valuable foreign exchange lost if the goods were not allowed to be shipped. The petitioner, therefore, asked for permission to ship their leather jackets. An order was passed allowing the petitioner to export leather jackets and the Customs Authorities were directed to allow the petitioner to export the jackets. The petitioner, however, was directed not to withdraw a sum of Rs. 10 lakhs from Allahabad Bank, International Branch, Park Street, Calcutta, where the sale proceeds were to be received. That interim order has been complied with. The goods have been despatched and the security for the export of the goods has been retained. The Court has been informed that a sum of Rs. 10 lakhs, as security, has been retained by the said Bank. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law for the time being in force; *** *** *** (1) any dutiable or-prohibited goods or goods entered for exportation under claim for drawback which do not correspond in any material particular with the entry made under this Act or in the case or baggage with the declaration made under Section 77 in respect thereof; *** *** *** Sec. 120 - Confiscation of smuggled goods notwithstanding any change in form, etc. (2) Where smuggled goods are mixed with other goods in such manner that the smuggled goods cannot be separated from such other goods, the whole of the goods shall be liable to confiscation: Provided that where the owner of such goods proves that he had no knowledge or reason to believe that they included a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... export of leather jackets made in India. Therefore, clause (d) of Section 113 is not attracted. 10. Clause (i) of Section 113 also relates to "any dutiable or prohibited goods" which do not correspond in any material particular with the entry made. The contention of the petitioner, which has not been refuted by the respondent, is that the goods are neither dutiable nor prohibited. So, if there is any mis-description, the goods are not liable to confiscation. 11. Similarly, sub-section (2) of Section 120 also is not attracted because the goods cannot be described to be the smuggled goods at all. Although the term 'smuggled goods' has not been defined in the Customs Act, the word 'smuggling' has been defined to mean any goods which are li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the order of confiscation as well as the order imposing redemption fine Rs. 7,50,000/- and personal penalty of Rs. 5 lacs are also quashed. 14. The Adjudicating Officer has also made certain recommendation for taking steps for cancellation of the licence by the Licensing Authority. I do not pass any order in respect of that. I however, direct if any steps are taken by the Licensing Authority, the petitioner should be given a hearing before passing any such order. 15. I also make it clear that this order will not prevent the respondents from proceeding in accordance with law against the petitioner for mis-description in respect of the goods. The petitioner will also be entitled to defend itself in accordance with law. 16. The petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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