UNION OF INDIA Vs. GLAXO LABORATORIES INDIA LTD

JUDGEMENT

(1.) The appellants, who are the Union of India and Customs Officers, have filed this appeal against an order and judgment of the learned single judge of this Court, by which he quashed the directions contained in the order dated 13th Dec., 1971, Exh. C to the petition, and the endorsements on the licence made on 25th May, 1972 Exh. E to the petition.

(2.) A few facts that need to be noted for the purpose of understanding the disputes are these : The original respondents are a limited company, manufacturing drugs. They have an import licence under the Imports and Exports (Control) Act, 1947, read with Import and Export (Control) Order, 1955. This licence permits them to import a number of articles, which serve as raw materials in the manufacture of drugs in India. They have the liberty to import any one or more of those articles in any quantity they want, so as not to exceed the c.i.f. value of the licence, which in the present case, was Rs. 8,94,455/-.

(3.) The respondent ranks as a priority industry. It imported a raw material called "Griscofulvin" F.T. for the purpose of manufacturing antifungus formulations used in the treatment of skin diseases. So far as the disputed item covered by the Bill of Entry at Exh. E is concerned, two distinct valuations were disclosed by the respondent.