STERLITE CABLES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition filed under Article 226 of the Constitution, the petitioners are challenging legality of order dated August 28, 1984 passed by Additional Collector of Customs confiscating the goods imported by the petitioners in exercise of powers conferred under Section 111(d) of Customs Act, 1962 read with Section 3(2) of Imports and Exports (Control) Act, 1947. The Additional Collector permitted the petitioners to redeem the goods on payment of fine, which is about Rs. Ten lacs. The facts, which gave rise to passing of the order, are as follows:

(2.) The petitioners imported copper wire rods from Zambia and France valued at Rs. 53,90,821/-. The petitioners filed nine Bills of Entry against licence dated May 11, 1981 for clearance for home consumption. The licence was valid till May 31, 1982, but was revalidated for further duration of six months i.e. till November 29, 1983 including grace period. At the time of renewal of licence, an OGL slip was attached stating that licence in question was valid for OGL items only under para 185 of Import Policy 1982-83. Paragraph 185 of Import Policy, inter alia, prescribes that Export Houses will be allowed to import OGL items against REP licences issued in their own name or transferred to them by others. This facility is available for the import of raw materials, components, consumables and spares (excluding items covered by Appendix 5) which have been placed on Open General Licence for Actual Users Industrial, as per conditions laid down.

(3.) The Collector of Customs declined to grant clearance of imported consignment and served show cause notice dated March 2, 1984 as to why the imported goods should not be confiscated. The show cause notice, inter alia, claims that the consignment was covered by Serial No. 15 of Appendix 8 of Import and Export Policy and hence not permissible under Open General Licence. The petitioners filed objection and claimed that the Policy applicable is of year 1982-83 and not of year 1983-84, as claimed by the Department. After considering the claim of the petitioners, especially footnote No. (2) to Appendix 8 of Policy for year 1982-83, the Collector held that the said footnote has no application and the import by the petitioners as an OGL item was not permissible. The Collector thereupon passed impugned order of confiscation of imported consignment and the said order is under challenge.