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TMI Blog1996 (11) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... g with search and seizure operations in their premises. The writ petition was dismissed by a learned single Judge and the appeal therefrom by the Division Bench. The writ petition was filed upon the basis that the Customs authorities had no right or authority nor did the Customs Act, 1962, empower them to go into questions relating to the utilisation of the raw materials that had been imported by the appellants under advance licences granted to them under the Duty Exemption Scheme. It was the case of the Customs authorities that the raw materials had been imported by the appellants without payment of duty by availing of the benefit of an Exemption Notification dated 30th April, 1988 (No. 116/1988). The terms and conditions thereof had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licence holder fails to discharge the prescribed export obligation within the permitted time, the licensing authority shall initiate action against the licence-holder on the lines indicated in Chapter XIX of the Hand Book of Procedures, 1988-91. This shall, however, be without prejudice to any other action that may be initiated by the Customs authorities for recovery of Customs duty or other duties and interest thereon under Section 142 of the Customs Act, 1962." Learned Counsel drew attention to the Hand Book of Procedures, April 1988 - March 1991, issued by the Ministry of Commerce, Government of India, Chapter XIX whereof also dealt with the Duty Exemption Scheme. Paragraph 374 dealt with the consequences of a licence holder failing to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions of the licence relating to the use of goods after they are cleared from the Customs charge." 8.Section 111(o) is the sheet-anchor of the respondents' case. It reads thus : "111.Confiscation of improperly imported goods, etc. - The following goods brought from a place outside India shall be liable to confiscation - xxxxxx xxx xxx any goods exempted, subject to any condition, from duty or(o) any prohibition in respect of the import thereof under this Act or any other law for the time being in force, in respect of which the condition is not observed unless the non-observance of the condition was sanctioned by the proper officer." 9.Section 111(o) states that when goods are exempted from Customs duty subject to a condition and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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