SANJAY SANWARMAL AGARWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner is a sole proprietor of M/s. Siddhivinayak Impex, Bombay and deals in import and export of various goods. This petition is directed against the act of respondent Nos. 2 and 3 in seizing the consignment imported by the petitioner and not allowing the said consignment to be cleared by respondent Nos. 4 and 5 on the alleged ground that the import of goods has become illegal as the import having been done under the transferred Advance Licence, which has been suspended by the Licensing Authorities at Ahmedabad as the same was prima facie found to be obtained fraudulently. THE FACTS: The facts giving rise to the present petition, in nut shell, are as under:

(2.) THE petitioner is holder of Advance Licence bearing No. P/k/3489550 dated 15th November, 1994 having purchased the same for a valuable consideration of Rs. 14,47,600 from the original licensor one M/s. Omkar Exports of Ahmedabad, a Government recognised export house. Under the said licence import of Polyester Yarn to the extent of 30,800 kgs. was allowed. The petitioner claimed to have purchased the said licence as per the Import Export Policy, 1992-97 following procedure provided in the procedure of hand book after verification of audited documents and receipt of certificate certifying that the export obligation had been completed by the transferor. The licence was transferred on 16th June, 1995 in favour of the petitioner. According to the petitioner, as per the aforesaid policy the transfer of licence was freely transferable without any restriction to any other person.

(3.) THE manufacturers based at Jakarta offered the said Polyester Yarn to the petitioner on 13th June, 1995. The petitioner opened Letter of Credit in favour of the supplier on 19th June, 1995. On 16th August, 1995, he filed Bill of Entry for clearance of the goods under Section 46 of the Customs Act, 1962 ("act" for short) bearing No. 1736 and produced import licence alongwith Bill of Entry for duty free clearance of the said Polyester Yarn.