COLLECTOR OF CUSTOMS Vs. UDAY ENGINEERING ENTERPRISES

JUDGEMENT

(1.) This is an appeal under Cl.15 of the Letters Patent. The Union of India and the Customs authorities are the appellants before us. The order challenged in this appeal is one dated August 30,1985, passed by a learned single Judge of this Court in a writ proceeding which was registered as C. R. No. 10290(W)/84. By the order impugned the learned Judge allowed the writ petition of the respondents (hereinafter referred to as the writ petitioners) and directed release of the goods imported by the respondents under a contract dated September 27,1982, on the basis of certain import licenses. The goods directed to be so released are said to be aligning tools (dial indicators).

(2.) The facts material for our present purpose are not in dispute. The writ petitioners purchased seven REP group of import licenses. REP license is a kind of license granted to an export house for importation of special types of goods for special use in the industry manufacturing the exportable goods. In the present case now before us the concerned licenses purchased by the writ petitioners authorised importation of goods described in A35 Appendix 17 of the Import Policy for 1984 and the description of the goods as set out therein is as follows :

(3.) On the authority of the licenses so purchased, on September 27, 1982, the writ petitioners entered into an agreement to purchase and import Mitutoyo Brand Aligning Tools (Dial Indicators) with M/s. Mitutoyo Manufacturing Co. Ltd., Japan. In terms of the said contract Mitutoyo Manufacturing Co. despatched several consignments of such aligning tools. The writ petitioners presented Bills of Entry to the Customs authorities for assessment of duty and release of the goods. The Customs authorities thought that the goods so imported were not covered by the licenses and hence, refused to release the goods without holding an adjudication proceeding. But before any adjudication proceeding could be taken up, the writ petitioners moved this Court on July 24, 1984, with a writ petition out of which the present appeal arises on a prayer for issue of an appropriate writ for release of the goods by the Customs authorities. In the writ petition the writ petitioners pleaded on the basis of certain certificates issued by certain experts that the goods imported were aligning tools. It was further pleaded that the Customs authorities themselves had earlier allowed importation of self-same instruments on the authority of the same type of REP licenses.