Case Note & Summary
The dispute arose between the Collector of Customs, Calcutta, and M. Shashikant and Co. regarding the import of Palm acid oil, a canalised item under the Import Policy 1985-88. The respondent applied for an Export House Certificate under the Import Policy 1978-79, which was denied due to lack of diversification in exports. The Bombay High Court allowed the respondent's writ petition, leading to a Special Leave petition by the Union of India, which was dismissed by the Supreme Court on April 18, 1985, directing the issuance of the Export House Certificate. Following this, the respondent was granted an additional licence for importing Palm acid oil and entered into a contract with a Singapore firm on May 5, 1986. However, the Collector confiscated the goods on October 31, 1986, citing unauthorized import due to the item being banned. The Customs, Excise and Gold (Control) Appellate Tribunal later set aside the Collector's order, stating the import was bona fide and referencing a previous judgment. The Union of India appealed to the Supreme Court, which found that the Tribunal erred in its judgment, clarifying that additional licence holders could not import banned items under the Import Policy 1985-88. The court restored the Collector's order, emphasizing the clarity of its previous judgments and the unauthorized nature of the import. The appeal was allowed with costs quantified at Rs. 11,000.
Headnote
A) Customs Law - Import of Canalised Items - Unauthorized Import - Import Policy 1985-88 - The court held that the import of Palm acid oil was unauthorized as it was a banned item under the Import Policy 1985-88, and additional licence holders were not entitled to import banned items. The Tribunal's acceptance of the respondent's bona fide plea was erroneous, leading to the restoration of the Collector's confiscation order (Paras 11-14).
Issue of Consideration
Whether the import of Palm acid oil by the respondent was authorized under the Import Policy 1985-88.
Final Decision
The Supreme Court allowed the appeal, set aside the Tribunal's judgment, and restored the Collector's order of confiscation, requiring the respondent to pay a fine of Rs. 58,00,000.
Law Points
- Import Policy
- Export House Certificate
- Additional Licence
- Canalised Items
- Confiscation of Goods
