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TMI Blog1988 (9) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... Nos. 1126 and 1127 of 1985 and, therefore, made the order of interim injunction absolute. In allowing these Writ appeals by order, dated 13-5-1986, a Writ of Mandamus was issued forbearing the respondent therein from taking any proceedings or action against the petitioner under the Customs Act, 1962. Since these writ appeals are preferred against order passed in interlocutory application and as the Writ Petitions themselves are pending, disposal and elaborate arguments have been advanced by Counsel appearing for both parties, yet, in the interests of the parties, only the prima facie point involved is considered for finding out whether the grant of injunction and directions issued are justified or not. 3.The averments in W.P. No. 6494 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se provisions and not by the provisions of the Customs Act. It had been issued with advance licence against firm export orders and the execution of bond was waived by the Joint Chief Controller of Exports and Imports, Madras. When the policy book itself contains several schemes under which raw materials are permitted to be imported with an export obligation attached thereto, and in case of any failure to fulfil such obligation, the concerned authority having been conferred with power to initiate action, the Customs Authorities had no jurisidction to seize the goods of the petitioner. Their only duty is to question the classification and value of the goods in question, and even in instances like this wherein the import is covered by the Sche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments, licences including DEEC books seized from them and also for permitting them to clear the imported goods. W.M.P. No. 9401 of 1983 was filed to direct them to release the imported dyes and pigments which are kept in the bonded warehouse. W.M.P. No. 9403 of 1988 when filed to direct them to issue detention certification for the said goods. All these petitions were taken up together and on the learned Judge ordered the petitioners, these appeals have been preferred. 4.Learned Advocate General appearing for the appellants submits that whatever actions that may be taken by the Controller of Imports and Exports relating to the licence issued by him, yet when the goods in respect of which actions have been taken, have not suffered payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and (3) of the Import (Control) Order, 1955, as amended from time to time. The imports made are covered by advance licences issued, which in clause 4 states that in the event of the importer failing to fulfil the export obligation within the prescribed time limit, he will be liable to pay customs duty on the proportionate quantity of export materials imported corresponding to the products not exported. Clause 5 states that he has to pay customs duty on any excess items that have been left over after utilisation of the resultant product and completion of the corresponding export. Licensees are also bound to pay 18% interest per annum on the total amount of customs duty from the date on which amount due from them is actually paid. Hence even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Act of 1962, when the defaulted licence fails to act, according to sub-para 3. As for right to enter and inspect the premises and accounts books and to effect search and seizure in the event of non-compliance with the terms and conditions of the licence of the scheme, sections 4(b), (c), (d), (e) and (f) of Import and Exports (Control) Act provides for them. Confiscation is contemplated under Section 4(g) and (h) and penalty could be imposed under Section 4(i). The Act provides for powers to be exercised by authority functioning under the Act and, therefore, in respect of goods imported under licence issued under the Act, if there is any misutilisation or misapplication of the goods covered by the licence or the export obligation is not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ault of the licence, the balance of it, imported under the Scheme, would suffer payment of customs duty with interest thereon as found in paragraph 29(3) of Duty Exemption Scheme. 8.Circumstances would certainly arise in cases therein, in inspection in a factory and Authorities of the Customs Department may come across certain goods which are covered by the said Scheme and found irregularities of evasion of customs duty and in such of these instances what they will have to do is to forward the particulars which have come to their notice to the Controller of Imports and Exports who will have to take the follow-up actions and determine whether any customs duty would become payable, as stipulated in the Scheme in respect of goods which are n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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