SAMRAT INDUSTRIES Vs. UOI

JUDGEMENT

(1.) THE controversy in this case centres around interpretation of para 197(2) of the Import -Export Policy 1985 -88 (hereafter "the IE Policy").

(2.) THE petitioner feels aggrieved by an order dated 21.03.1997 made by the Appellate Committee constituted under the said IE Policy. The Committee affirmed the order of the adjudicating authority which had determined the penalty payable by the writ petitioner to be Rs. 19 lakhs.

(3.) AT the time of importation, the Collector of Customs was of the opinion that the goods were canalised and, therefore, not capable of free importation. A Show Cause Notice was issued which culminated in an adverse order. This was carried in appeal by the petitioner to the erstwhile Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT), Madras Bench. The Bench which comprised of a Technical Member and a Judicial Member were divided in their opinion as to the interpretation of various provisions of the IE Policy. The Technical Member was of the opinion that para 197(2) of the IE Policy which mandates prior approval of the CCI&E in certain circumstances in respect of goods mentioned in Appendix 5 Part B but which did not find specific mention in Appendix 17 did not apply and that accordingly, importation was lawful. The Judicial Member held otherwise. The third Member -Sh. Gowri Shankar, to which the matter was referred, agreed with the view of the Technical Member and held that upon an interpretation of paras 70(2), 75(1) and 76 with relevant entries in the appendices, the import of rapeseed, a canalised item, was in the circumstances of the case, permissible without prior approval.