9911796707
TMI Blog2004 (9) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... ch contract entered was for 40,000 MTS, No. 9815, dated 26-11-1998 and the shipments were made and cleared by Customs. A contract No. 9817 was, thereafter on date 1-12-1998 for shipments to be made during the period from 1999 to March, 1999 totalling 25,000 MTS no. entered, at price of USD 180 DMT. 2. By Notification No. 34/(RE-98)/1997-2002, dated 10-12-1998 the Exim Policy 1997-2002 ITC (HS) classifications for the subject goods was amended as "Secured and Defective items specified below is permitted for imports free, except those there of which the value in below the value specified" and for HR Coils (TMQ) such floor price specified was USD 232. The appellants wrote to their suppliers vide letter dated 15-12-1998, for cancellation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to accede to the request and stated that the shipment would be made as per the contract. They produced copies of the letters exchanged between them and their suppliers, which were taken on record. They had also argued that bulk of their imports, in the past have not been against letters of credit but on DA basis. There is, therefore, nothing unusual or extraordinary about the present import. I find that the party's plea for leniency deserves consideration. I have also taken note of the fact that this is their first import after the restriction was imposed. In view of this, I pass the following order. He imposed redemption fine of Rs. 1.1 crores. Hence this appeal. 3. Heard both sides and considered the material - (a) The Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the very same chapter 5 of Vol. II of manual provides - "(c) Relevant of letters of credit under other circumstances - Difficulties will however arise where specific provisions for letters of credit for particular imports are not made either in the Policy Book or in the ITC Public notice notifying changes in the policy. A question therefore arises as to whether when a policy becomes restrictive, and the shipments takes place after the change in policy, clearance should be allowed on the ground that the relative irrevocable letter of credit had not been opened before the change in the policy came into effect. On a strict treatment the benefit of pre-ban commitment should not be given to such imports, unless there is a specific provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nefit of contract in this case are not under challenge. (c) The reliance of the Ld. Advocate for the appellants, on the case of Matraco (India) Ltd. [2003 (162) E.L.T. 1192 (Bom.)] is well founded. In that case the Hon'ble Division Bench of Bombay High Court after noting that the importers acts were found to be bona fide, as in this case, held - "20........it is no doubt true that irrevocable letter of credit was not established by the petitioners but that by itself cannot be a ground to say that no concluded contract which was entered into by the petitioners was not a genuine contract. The condition relating to opening the irrevocable letter of credit put in the public notice was to prevent the importers entering into an import con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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