JEEGAR GEMS Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this petition, the petitioners challenge penalty and debarment order passed under the Imports and Exports (Control) Act, 1947 and Imports (Control) Order, 1955 respectively.

(2.) THE facts in brief, are that: an REP licence bearing No. P/k/k/044825/ REP was issued to the petitioners on 7/04/1981 for import of diamonds unset and uncut upto the value of Rs. 12,14,186/ -. The licence was valid upto 31/03/1982. On 20/03/1982 an endorsement was made on the licence for import of ogl items in terms of Para 185 of AM 1981-1982 policy subject to the condition laid down therein and the licence was made non-transferrable. In view of the above endorsement, the petitioners could import OGL items for actual use only.

(3.) ON 27/03/1982 the petitioners issued a letter of authority to M/ s. Didwania Imports and Exports Pvt. Limited (L. A. holder for short) authorising them inter alia to import on behalf of the petitioners the permissible OGL items under the relevant import policy AM 1982. The said L. A. holder on the basis of the letter of authority and the licence sought to clear 159. 75 MT of pvc Resin suspension grade valued at Rs. 5,84,111/- which were already imported, but were not cleared. Since the order for import of the said goods was placed prior to the letter of authority and the goods were imported prior to the issuance of the letter of authority, the Customs Authorities issued a show cause notice dated 7/03/1983, calling upon the L. A. holder to show cause as to how the order for import was placed with the foreign supplier on 8/03/1982 when the letter of authority was issued on 2 7/03/1982. Ultimately, the Collector of Customs by an order dated 9/04/1984 took a lenient view by holding that placing an order of import of goods prior to the obtaining of letter of authority is a technical offence and by taking a lenient view the Collector allowed release of the goods cautioning the l. A. holder not to commit such mistakes in the future.