H S MEHRA Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner was granted a licence dated 14-12-1959. for import of "textile fabrics or pieces thereof made of 'silk' only" from soft currency licensing area It was stated in the licence that "this licence is issued subject to the condition that the goods will be utilised only for consumption as materials or accessories in the licence holders factory and that no portion thereof will be sold to or permitted to be utilised by any other party or be pledged with any financier" The licence was made subject to certain conditions and the three relevant conditions were

(2.) The petitioner re-exported the goods after they had been made into table covers and embroidered in India and by the shipping bill claimed drawback of duty under Section 43B of the Sea Customs Act, 1878. The petitioner claims that the Customs authorities kept two samples of the silk imported and also of the table covers made of that silk at the time of its export and were satisfied that the petitioner had re-exported the entire imported silk represented by the finished goods and, therefore, allowed the export The petitioner had also been required to execute a bond in favour of the Government of the value of 100 per cent of the imported cost duly guaranteed by a schedule bank guaranteeing the re-export of the finished goods including the entire imported material within six months of the importation. The said bond was duly furnished by the petitioner and after the reexport the Assistant Controller (Export Promotion Call) cancelled the same by letter dated 23rd November 1961 In the said letter it was inter alia stated

(3.) The claim tiled by you for drawback of duty on the above mentioned goods at the time of export were only under Section 43B, Sea Customs Act. As such they were finalised at the rates of drawback prescribed under that section of the Sea Customs Act. The amounts of drawback paid to you are hence in order"