KANTILAL MANILAL AND CO Vs. UNION OF INDIA

JUDGEMENT

(1.) THE controversy in this petition lies in a very narrow compass and has been determined by several decisions of this Court. The petitioners are the transferees of REP Licence and on the strength of the Licence were desirous of importing certain goods. The petitioners imported 13,650 kgs. of Di-Ethanolamine from Japan. After the goods arrived in Bombay in January 1983, bills of Entry were filed for clearance. The Customs Authorities denied permission to clear the goods on the ground that the transferor of the licence was served with Show Cause Notice by the licencing authorities.

(2.) WHILE admitting the petition, the respondents were directed to clear the goods on petitioners' furnishing bond. Mr. Patel learned Counsel for the petitioners' submits that it is now well settled that the mere issue of notice against the transferor cannot entitle the Customs authorities to withhold the goods imported by the transferee of the licence. The licence is legally transferable and there is nothing wrong in the import of the transferee. The Petitioners, therefore, are entitled to relief.

(3.) AS the goods are already cleared by the petitioners by an interim order, the only relief now to be granted is that the bond furnished by the petitioners should stand discharged.