S A INTERNATIONAL Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) By this writ petition the petitioner challenged the show cause notice No. S. 15-25/25-5IB dated 9.5.1985. The said show cause notice was issued under Section 124 of the Customs Act, 1962 (For short the said Act hereafter). The said show cause notice read thus: NOTICE UNDER SECTION 124 OF THE CUSTOMS ACT, 1962 Subject:- Import of 246.140 M/T in 108 bundles of low carbon mild steel CRCA sheets declared as defective Ex-s.s. Vanil, rot No. 217/85 dated 2.5.1985 line No. 61 and 196.980 M/T low carbon mild steel CRCA sheets declared as defective ex-Vanil, rot No. 217/85, line No. 62 importers M/s. S.A. International, P-3, New C.I.T. Road, Calcutta - 73, Shippers M/s. ETS A-P Landowski Samis, Paris, Port of shipment Antwerp - undervaluation and unauthorised import - regarding. 1. M/s. C Bose & Sons, Customs House Agents filed two bills of entry on behalf of M/s. S. A. International, P-3, New I.I.T. Road, Calcutta 73 for clearance of two consignments of low carbon mild steel defective CRCA sheets (as declared) shipped from Antwerp ex-s.s. Vanila rot No. 217/85, line No. 61 and 62 covering quantities 246.14 M/T and 196.98 M/T clearances of the said consignments against the following import trade control licences. <FRM>JUDGEMENT_445_ELT36_1988Html1.htm</FRM> <FRM>JUDGEMENT_445_ELT36_1988Html2.htm</FRM> Thus, prima facie, as per declaration, goods valued at Rs. 1,33,091.58 is not covered by any licences.

(2.) All the import licences mentioned above are non-transferable licences issued with actual user conditions. The licence holders in turn have issued letters of authority in favour of M/s. S.A. International, P-3, New CIT Road, Calcutta-73, authorising them to import goods, without specifying the nature of goods, description of goods quantity or any other particulars required by them. It is the condition of the licences that the goods imported shall be handed over to the licence holders for use in their factory.

(3.) In respect of line No. 61, two licences belong to M/s. Monali Sea Food Pvt. Ltd., Calcutta issued against export product classifiable under F 1.3 of Appendix 17 of the Import Policy. SI. No. F 1.3 relates to fish and fish products, all others including frog legs. As per para 138(1) of A.M. 1985 Policy, the said facilities are applicable for import of raw-materials, components, consumables, spares and packing materials as are related to the products exported or manufactured by the exporters concerned. It appears that CRCA sheets defective are not required by M/s. Monali Sea Foods Pvt. Ltd. for their use insofar as CRCA sheets get rusted and contaminate the food items packed. CRCA sheets are normally used for manufacture of iron safes, trunks, buckets and such other articles and not for food processing. Hence this appears to be a case of misuse of facilities granted under para 138 of the Import Poticy. Hence it appears that licence Nos. P/L 3073640 dated 13-7-1985 and P/L 3073639 dated 13-7-1984 for clearance of goods valued at Rs. 77,150 are not valid for the import of the goods in question.