AI Structured Summary
Not yet generated for this judgment
Judgment
Heard.
Perused writ petition.
The petitioner is claiming to be a bona fide transferee of two licences bearing Nos. 2313379 and 31002874 dated 22-12-1998 and 7-12-1998 respectively, which were originally issued in favour of M/s. Betul Oils and Flours Ltd.
The petitioner has purchased these licences for valuable consideration. The invoices produced seeking clearance of Vitamin B2 Riboflavin (feed grade 96%) along with Bill of Entry No. 108971 dated 12-2-2000 indicated the details of these licences.
The Adjudicating Authority passed an order dated 21-12-2000 confiscating goods in exercise of powers u/s 111(d) of the Customs Act, 1962 and imposed a redemption fine of Rs. 3 lacs along with penalty of Rs. 20,000/- u/s 112(a) of the Act, duty free clearance of the goods was denied to the petitioner.
The petitioner aggrieved by the above order approached the Appellate Tribunal.
The Tribunal after hearing the parties recorded a finding that though the licences were transferred in the name of the petitioner but they were handed over to the Customs by one Mr. Mehta of M/s. Veekay Products Pvt. Ltd., as such these licenses could not be treated to have been held and tendered by the petitioner to the Mumbai Custom House; as such imports under these licences were held to be not valid.
The petitioner contends that the licences were valid on the date of import and filing of the Bill of Entry. Since the goods imported by the petitioner were covered under the said licences, the Customs Authorities were bound to accept the licences and debit them to the duty amount. They could not have held that the imports were invalid.
The affidavit-in-reply filed by the Assistant Commissioner of Customs states that these licences are in possession of the SIIB Department. Be that as it may, the licences are admittedly in possession of the Revenue.
Mr. Jetly, appearing for Revenue, after taking instructions, has agreed to hand over these two licences to Mr. Mehta of M/s. Veekay Products Pvt. Ltd. within one week from today so as to complete the adjudication process.
Having heard rival parties considering consensus between them, the order-in-original (Exhibit J) dated 21-12-2000 and consequent CESTAT''s order dated 2-1-2003 (Exh. O) are set aside and matter is remitted back to the Commissioner of Customs (Import), the Adjudicating Authority to adjudicate and decide as to whether or not the licences produced covered the goods imported by the petitioner.
The adjudication process should be completed within two weeks after the petitioner producing the licences before the adjudicating authority. It is made clear that even if the licences are found to have expired while in the custody of the department, the Customs Authorities shall not raise any objection on that count, if they find that the goods imported by the petitioner were covered by the subject licences since the litigation in this behalf was pending. Pendency of litigation is not expected to cause prejudice to the petitioner.
The petitioner undertakes to keep the Bank guarantee alive till the Adjudicating Order is passed and served on the petitioner and four weeks thereafter. The petition is disposed of in terms of this order keeping rival contentions open. No order as to costs.
The parties to act on the authenticated copy of this order.