MATRACO LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners by the present petition seek to challenge validity and constitutionality of a Public Notice No. 82 (ITC)/pn/ 88-91 dated 29th November, 1988 and para 5 of Appendix-6 of Import and Export Policy april 1988-March 1991 ("said policy" for short) and the order in original dated 23rd March, 1989 as well as the order of respondent No. 3, the Customs, excise and Gold (Control) Appellate Tribunal ("cegat" for short); whereby the redemption fine in lieu of confiscation was reduced from Rs. 9 lakh to Rs. 4. 5 lakh holding that the petitioners were entitled to a benefit of doubt on the facts and circumstances of the case. ________________________________ facts:

(2.) THE brief facts leading to the petition are as under: the petitioners are a company engaged in the import of several items. In or about September 1988, one Mr. Ashok Gupta, Director of the petitioner company visited Hong Kong for the purpose of business and placed an order with M/s. Easmesco International Corporation, Hong Kong (hereinafter referred to as the "suppliers" for short) for an aggregate quantity of 91 M. T. i. e. 7 containers of 13 M. T. each of Cassia of Chinese Origin.

(3.) OUT of the total quantity of 91 M. T. , the order of 2 containers (26 M. T.)was placed on behalf of M/s. Agro Impex, order of 1 container (13 M. T.) was placed on behalf of M/s. Oriental Containers and order for the balance 4 containers (52 M. T.) was placed on behalf of the petitioners. As regards the 3 containers booked in the name of M/s. Agro Impex and M/s. Oriental Containers, the Suppliers insisted upon the payment by irrevocable letter of credit. However, since the petitioners had imported a consignment of citric acid from the same Suppliers somewhere in January 1988 on payment on document basis i. e. without a letter of credit, the Suppliers agreed to ship cassia without insisting upon the letter of credit being opened by the petitioners. On 29th september, 1988, the Suppliers issued proforma invoice in favour of the petitioners for 4 containers aggregating 52 M. T. of Cassia of Chinese Origin being confirmation of the order placed on behalf of the petitioners.