Case Note & Summary
The petitioner, M/s. M.B. Impex, a sole proprietorship concern, imported a consignment of almond seeds (Non Pareil variety) from California, USA in February 1989. They filed a bill of entry seeking clearance under a REP licence which had an endorsement for import of 'seeds'. The Collector of Customs, by order dated 8.6.1989, concluded that the imported goods were not admissible for import under the replenishment licence because almonds are not considered 'seeds' for import purposes. Consequently, the Collector ordered confiscation of the goods under Section 111(d) of the Customs Act read with Section 3 of the Imports & Exports (Control) Act, 1947, and imposed a redemption fine of Rs. 18 lakhs and a penalty of Rs. 2 lakhs. Aggrieved, the petitioner appealed to the Customs, Excise and Gold (Control) Appellate Tribunal, which by order dated 24.10.1989 upheld the Collector's decision on the merits and found no error in the quantum of fine and penalty. The petitioner then filed the present writ petition before the Bombay High Court challenging both orders. The High Court, after hearing arguments, dismissed the petition, affirming that the import was without a valid licence and that the confiscation and penalties were justified.
Headnote
A) Customs Law - Import Licence - Interpretation of 'Seeds' - The imported goods were almond seeds (Non Pareil variety) from USA, sought to be cleared under REP licence endorsed for 'seeds'. The Collector of Customs held that almonds are not seeds for import purposes and ordered confiscation under Section 111(d) of the Customs Act read with Section 3 of the Imports & Exports (Control) Act, 1947, imposing a redemption fine of Rs. 18 lakhs and penalty of Rs. 2 lakhs. The Appellate Tribunal concurred. The High Court upheld the orders, holding that the term 'seeds' in the licence does not cover almond seeds meant for consumption. (Paras 1-3)
Issue of Consideration
Whether the imported almond seeds fall within the term 'seeds' as per the REP licence and whether the confiscation and penalties imposed are valid.
Final Decision
The High Court dismissed the writ petition, upholding the orders of confiscation and imposition of redemption fine and penalty.
Law Points
- Interpretation of 'seeds' in import licence
- Confiscation under Section 111(d) of Customs Act
- Redemption fine and penalty under Customs Act
Case Details
2005 LawText (BOM) (02) 338
WRIT PETITION NO. 1399 OF 1990
S. Radhakrishnan, J.P. Devadhar
Mr. N.S. Thakkar with Mr. M. Baya for the Petitioner, Mr. A.J. Rana, Sr. Advocate with Mr. H.V. Mehta for the Respondents
Union of India, The Collector of Customs, Bombay, Mr. R. Jayaraman, Mr. P.K. Desai
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Nature of Litigation
Writ petition challenging orders of confiscation and penalty under Customs Act.
Remedy Sought
Petitioner sought quashing of the Collector's order dated 8.6.1989 and the Appellate Tribunal's order dated 24.10.1989.
Filing Reason
Petitioner imported almond seeds under REP licence endorsed for 'seeds', but authorities held that almonds are not seeds and confiscated the goods.
Previous Decisions
Collector of Customs ordered confiscation and imposed redemption fine of Rs. 18 lakhs and penalty of Rs. 2 lakhs on 8.6.1989; Appellate Tribunal upheld the order on 24.10.1989.
Issues
Whether the imported almond seeds fall within the term 'seeds' as per the REP licence.
Whether the confiscation and penalties imposed are valid.
Submissions/Arguments
Petitioner argued that the imported goods were seeds and covered by the REP licence.
Respondents contended that almonds are not seeds for import purposes and the import was without valid licence.
Ratio Decidendi
The term 'seeds' in an import licence does not include almond seeds meant for consumption; import without valid licence is liable to confiscation under Section 111(d) of the Customs Act.
Judgment Excerpts
By this Petition, the Petitioner is challenging the order dated 8.6.1989 passed by the Collector of Customs, being the order in original and also the Appellate order passed by the Customs Excise & Gold (Control) Appellate Tribunal dated 24.10.1989.
The Collector of Customs by the aforesaid order dated 8.6.1989 came to the conclusion that the aforesaid imported goods were not admissible for import in terms of the replenishment licence produced by the Petitioner and accordingly passed an order of confiscation under section 111(d) of the Customs Act r/w Section 3 of the Imports & Exports (Control) Act, 1947.
Procedural History
Petitioner imported almond seeds in February 1989; Collector of Customs passed confiscation order on 8.6.1989; Petitioner appealed to CEGAT which upheld the order on 24.10.1989; Petitioner filed writ petition in Bombay High Court which was dismissed on 17.02.2005.
Acts & Sections
- Customs Act, 1962: 111(d)
- Imports & Exports (Control) Act, 1947: 3
