9911796707
TMI Blog1993 (6) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... . The petitioners thereupon preferred the present petition under Article 226 of the Constitution seeking direction to the Collector of Customs to clear the consignment. The learned single Judge while admitting the petition directed the department to clear the consignment after provisional assessment and by securing requisite bank guarantee and bonds from the petitioners. The department was given liberty to complete adjudication proceedings in pursuance of the show cause notice issued on June 23, 1985 under Section 124 of the Customs Act. 2. Accordingly, the petitioners cleared the consignment after furnishing bank guarantee and thereafter the Additional Collector of Customs by impugned order dated June 5, 1986 held that the goods cleared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce (marine) policy, insurance claim must be settled by the insurance company and the goods to be imported must be the replacement of previously imported goods which were lost or damaged after import. The conditions to take advantage of the replacement import are - i) that the replacement goods should be imported within 24 months from the date of the clearance of the previously imported goods; ii) that no remittance shall be allowed except for payment of insurance and freight charges where the replacement of goods by the foreign suppliers is subject to such payment; and iii) the documents in respect of this shall be produced by the importers before the customs authorities. Now, in the present case, it is not in dispute that the goods previou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rance claim in respect of goods previously imported and which were destroyed in fire. It was further held that the replacement goods were not purchased from the insurance claim and therefore the provisions of Appendix 16 OGL-4 Import Policy 1983-84 has no application. We are unable to accept the claim urged on behalf of the department that the insurance covered ceases to have effect as soon as the goods reached Ludhiana town. A perusal of insurance policy makes it clear that the insurance covered is available while the goods are in transit and the policy clearly lays down that it is from warehouse to warehouse, i.e. the warehouse of the importer. The mere fact that the goods have reached Ludhiana town is not enough to conclude that the tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is pending in this Court for last about ten years and no fruitful purpose will be served by directing the petitioners now to file an appeal. In our judgment, the relief sought by the petitioners cannot be denied. 7. Accordingly, petition partly succeeds and the impugned order dated June 5, 1986 passed by the Additional Collector of Customs and the copy of which is annexed as Exh. 'B' to the petition, is set aside and it is declared that the replacement import squarely falls within me provisions of Appendix 16 OGL-4 AM 1983-84 policy. The relief sought by the petitioner in respect of landing charges and in respect of payment of additional/countervailing duty is rejected. The department is at liberty to enforce the bank guarantee furnis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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