UNION OF INDIA Vs. PITAM CHAND

JUDGEMENT

(1.) Pitam Chand, respondent in this regular first appeal, was the holder of an Import Trade Control Licence No. 0063384/56/CCI/D dated December 30, 1956 for the Licensing period from July to December, 1956, permitting importation of Motor Vehicles Part covered by entries Nos. 293, 295 and 297 (Part IV) of the Import Trade Regulation of the corresponding period. On the strength of this licence, he imported a consignment of 64500 pairs of auto pedals 3-2/4" C.P. for N.S.U. and/or Lambretta motor cycles which arrived at Madras on or about January 28, 1958. The consignment was not allowed clearance. On February 26, 1958, Assistant Collector of Customs, Madras, issued a show-cause notice stating that the importation was not covered by the licence as the goods were covered by item No. 75 (8) of the Indian Customs Tariff corresponding to serial No. P. IV 301 of the I.T.C. Schedule. The respondent showed cause but the Collector of Customs by order dated May 1, 1958 confiscated the goods and allowed an option to the respondent to clear them for home consumption on payment of a fine of Rs. l,00,000.00 (Rs. One lakh only). The respondent deposited this, amount under protest and appealed to the Central Board of Revenue. By order dated June 8, 1959, the Board dismissed the appeal. Revision to the Central Government was also dismissed by order dated May 24, 1960. On December II, 1961, the respondent, therefore, filed the suit against Union of India, the appellant before us, praying for a declaration that the aforesaid orders passed by the Collector of Customs, Central Board of Revenue and the Central Government were illegal, inoperative, ultra vires and null and void, on the ground, amongst others, that the Collector acted beyond jurisdiction in holding that the imported goods were not covered by the licence and that this conclusion was based on undisclosed material and without application of mind and consideration of the evidence. He also prayed for a decree for the refund of Rs. l,00,000.00, paid by him under protest, with interest. The suit was contested by the appellant. It was maintained that the orders assailed were perfectly legal and the suit was barred under the Sea Customs Act and Imports and Exports Act, 1947 and also by limitation. On the pleadings, the trial court framed the following issues:-

(2.) The court found issues 1 and 2 in favour of the respondent. Under issue No. 3, the court held that the Collector had acted in excess of his jurisdiction in reaching the conclusion that the goods were not covered by the licence and that there was also voilation of principles of natural justice in as much as the Collector in arriving at the conclusion that the import was unauthorised took into consideration facts of which no notice was given to the respondent, thereby contravening principles of natural justice. Under issue No. 4, it was held that the respondent was entitled to the refund of the fine imposed by the impugned order. Under issue No. 5, the court held that no case for the grant of interest was made out. A decree tor Rs. l,00,000.00 (Rupees one lakh) only was, therefore, granted in favour of the respondent leaving the parties to bear their own costs.

(3.) Aggrieved from this judgment and decree, Union of India has filed this appeal and the respondent Pitam Chand has filed cross objections. The cross-objections are confined to the order refusing costs of the suit.