BEATITUDES SOCIAL WELFARE CENTRE Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THE import which is the subject matter of dispute in this case was effected by Beatitudes Social Welfare Centre in December, 1978 against exemption certificate issued by the Central Government under the provisions of Section 25(2) of the Customs Act, 1962 (hereinafter called "the Act"). It was, however, found to be a case, at the time of clearance, where the description of the goods did not tally with the ad hoc exemption on which the Importer had placed reliance, inasmuch as it was discovered that whereas the exemption was for import of Mercedes Benz Ambulance Vans, the imported vehicle was the Volkswagon (Station wagon). Although initially the party was allowed time to obtain ad hoc exemption relating to the imported goods but since the same was not procured and produced by the stipulated time on 26.6.1979, thereafter a notice to show cause was issued on 5.9.1979 under Section 124 of the Act, to show cause as to why goods should not be confiscated under Section 111(d) of the Act, on the view that there was contravention of the Import Trade Control Regulations inasmuch as the goods had been imported without any import licence, disregarding the prohibition imposed by Clause 3 of the Imports and Exports (Control) Act, 1947 and that this rendered the goods liable for confiscation under the provisions of Section 111(d) of the Act. It was also felt to be a case where the Importer was liable to imposition of penalty under Section 112 of the Act.

(2.) AFTER the written reply was filed to the Show Cause Notice, the Collector of Customs, Madras gave a personal hearing and thereafter disposed of the matter by his order dated 29.10.1979. Finding it to be a case where the description of the imported goods was entirely different from the one given in the letter dated 30.5.1977, with reference to which ad hoc Exemption Order No. 382 dated 14/16.7.1977 had been given, he held that in view of the fact that the vehicle was not covered by the said ad hoc Exemption Order, a licence for its importation was required and since no licence has been produced, besides being a case of contravention of the provisions of Section 3(1) of the Imports and Exports (Control) Act, 1947 and consequential confiscation under Section 111(d) of the Act, it was also a case where customs duty was fully leviable and party's prayer for its duty free release could not be entertained. The vehicle was accordingly ordered to be confiscated although the Collector thought it to be a fit case to allow redemption of the same on the payment of a fine of Rs. 75,000/ - which option was to be exercised within a period of two months from the date of receipt of the order. He also held it to be a case, as already observed, where full customs duty at the rates fixed in the Tariff for such vehicles, was leviable.

(3.) THE Importer carried an appeal against this Order before the Central Board of Excise and Customs and which appeal was disposed of by Member (Judicial) of the Board by his Order No. 746 -A of 1980 dated 27.3.1980. After considering the written submissions made in the Grounds of Appeal and the plea made during hearing by Father Schlooz, Director of the Centre, who pleaded that the Importer was a charitable organisation and the import had been effected as a result of donations having been made from abroad in view of the activities of the Centre which looked after lepers and other destitutes and that the change in description was not of Importer's own volition but because of the donors' finding it difficult to procure the ambulance van which was earlier intimated and that the change was not intentional or mala fide, the learned Member came to the conclusion that strictly speaking, the ad hoc exemption relied upon by the importer did not cover the imported vehicle and to that extent levy of customs duty was unavoidable and to that extent the appeal was dismissed. However, on the point of import having been effected without licence, it was observed that the clearance could be effected even after obtaining licence subsequent to the import and to that extent the want of import licence was not material. The redemption fine was reduced to a token fine of Rs. 1,000/ -.