CHEMSILK COMMERCE PVT LIMITED Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The matter pertains to Duty Exemption Scheme under Chapter VII of the Export & Import Policy, 1992-97. Under the said Scheme import of raw materials, components required for the product to be exported are permitted duty free for processing. A quantity based Advance Licence for the materials to be imported against it is freely transferable after the export obligation is fulfilled and Guarantee/ LUT is redeemed. The petitioner purchased a licence after it was made transferable from M/s. Enterprise Finance Ltd. who in turn purchased from M/s. Venice Silks who in their turn purchased the same from the original licencee M/s. Annapurna Yarn Fabrics. The petitioner imported goods into the country which arrived at the Calcutta Port on 30th August, 1996 and the petitioner sought for release of the same on the basis of the aforesaid licence claiming exemption of the Import duty on the goods imported by the petitioner. The Custom Authorities, however did not allow the petitioner to remove the goods and instead directed the petitioner to store the goods in the Bonded Warehouse under Section 49 of the Customs Act and giving an option to the petitioner to clear the goods on production of any other licence. This was done on the basis that the Custom Authorities had issued a Show Cause Notice to the original licencee i.e. M/s. Annapurna Yarn Fabrics against the very same Advance Licence dated 16.1.95 and the case was posted for hearing on 4.2.97.

(2.) The above writ petition was filed assailing the action of the respondent Customs Authority in not releasing the goods to the petitioner on the basis of the Duty Free Licence dated 16.1.95 and for certain, consequential directions upon the respondent authorities.

(3.) After having heard the learned Counsel for either parties this Court is of the view that this writ petition can be disposed of at this stage with certain appropriate directions upon the Customs Authorities.