EXPORTOS APPAREL GROUP LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, engaged in the business of import-export has filed this petition under Article 226 of the Constitution praying for a writ of mandamus commanding the respondents and or the customs authorities under the respondents to release its goods being the electronic integrated circuits imported by the petitioner. The petitioner also seeks a writ of prohibition restraining the respondents and other customs authorities from taking any adverse action against the petitioner. Detention or non-clearance of the aforesaid goods has also been questioned as being without jurisdiction. Lastly., a writ of certiorai is sought quashing circular dated 9 May 1994 issued by the Government of India in the Ministry of Finance, Department of Revenue (Central Board of Excise and Customs) (C.B.E.C. for short). By this letter the C.B.E.C. had instructed the officers of the customs under the Customs Act, 1962 (for short "the Act") not to follow the instructions issued by the Directorate General of Foreign Trade by its Circular dated 27 April 1994 on which the petitioner strongly relies.

(2.) There are two respondents, namely, (1) the Union of India in the Ministry of Commerce (Directorate General of Foreign Trade), and (2) the Central Board of Excise and Customs through the Director (Customs).

(3.) The facts are quite in brief. An advance import licence was issued on 26 April 1993 by the Joint Director General, Foreign Trade. Bombay, to Peico Electronics and Electricals Limited for import of integrated circuits (I.Cs.) and certain other items. The value of the licence was Rs. 71,42,728.00 and it was valid for a period of 12 months. The resultant product, which the licensee was to export within a period of 12 months from the date of the issue of the licence, was Radios (CKD/SKD) of the value of Rs. One crore (FOB). The licensee transferred this licence to M/s. Hardware Trading Corporations who in turn re-transferred the same in favour of the petitioner. On the authority of the licence. the petitioner imported T.Cs. (50.000 sets) of he value of Rs. 19.11.930. The petitioner filed its Bill of Entry for the purpose of clearance of these I.Cs. on 27 June 1994. Petitioner sought duty free clearance of the goods on the ground that I.Cs. were capable of being utilised in the manufacture of radio, i.e. the export product specified in the advance licence which was enclosed with the Bill of Entry. The Assistant Collector of Customs was not satisfied that these I.Cs. could be used for the manufacture of radios. He was of the prima facie view that these I.Cs were required in the manufacture of T.V. sets. He, therefore. made the following endorsement on the Bill of Entry:-