GLOBAL ENTERPRISES Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this petition, the petitioners have challenged the order in original passed by the Collector of Customs, Nhava Sheva on 20th December, 1990 wherein a consignment of Poppy Seeds imported by the petitioners have been confiscated and the petitioners were permitted to redeem the said goods on payment of redemption fine of Rs. 1,00,000/- and penalty of Rs. 50,000/ -.

(2.) THE petitioners had imported 44,730 kgs. of Poppy Seeds from Hongkong at the rate of Rs. 6/- per Kg. The petitioners sought clearance of the said goods under the REP licence acquired by them. Under the said REP licence, the petitioners were entitled to import the "seeds of vegetable/flowers (excluding oil sees and dry fruits)".

(3.) BY a show cause notice dated 21-3-1990 the Assistant Collector of Customs called upon the petitioners to show cause as to why the said goods should not be confiscated, inter alia on the ground that the imported goods being in the nature of consumer goods of agricultural original are covered by the appendix 2-B, Serial No. 145 of the Import Policy 88-91 and, therefore, cannot be cleared under the REP licence furnished by them. It was further stated that cultivation of Poppy plant and product thereof are controlled and monitored by the Central Government and only those persons who have such permission of the Central Government are entitled to grow to Poppy plants. It was also stated that the valuation of the goods were grossly misdeclared by the petitioners. The petitioners in their reply contended that the licence procured by them is a specific licence valid to cover the imports of the seeds of vegetable flowers and, therefore, Poppy seeds were liable to be cleared under the said REP licence.