M.J. PHARMACEUTICALS LTD Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THIS appeal is directed against the Order -in -Original No. S/10 -1441/88ACC, dated 27 -9 -1988 of the Collector of Customs, Air Cargo Complex, Bombay.

(2.) THE appellants filed Bill of Entry for clearance of the consignments of 20mm Flip -Off Seals valued at Rs. 1,27,891/ - and sought clearance thereof against two REP licences issued in favour of M/s. M.J. Export, a Registered Export House/Trading House, one issued against the product group G -5 -1, and another against product group G31(l) and (iii) of Appx. 17 of Policy Book AM 85 -88. The latter one of the licences, bore the endorsement vide Para 204 of the same Policy Book. Claiming themselves as the supporting Manufacturers and pleading that they had purchased the goods on High Sea Sale basis the clearance was claimed by the appellants. As the item imported specifically figured in the first licence, no objection was raised in relation thereto the eligibility for import under other licence was objected to on the same was in relation to export product group G -31(l) and (iii) viz. spices included in bulk packing and spices, whole or groundnut or curry powder and packed in consumer pack, and the material imported could not be accepted as packing material for the same. Show Cause Notice was waived but the appellants filed their written reply and pleaded that the subject REP licence was issued to Trading House with endorsement of Para 204 of the Policy Book, and it was permissible to import under such licences, any packing material which was required by their supporting manufacturers. They also pleaded that they were listed as supporting manufacturers and were approved by J.C.C.I.E.

(3.) THE Adjudicating Authority however held that the said REP licence could permit import only of such packing material as may be permitted for packing of the exported products. Referring the Para 7 in App.17 of the Policy Book, he also rejected the plea of eligibility of the licence for import of subject goods by virtue of endorsement of Para 204 of the said Policy Book. He also observed that the Item would even otherwise fall under Appx. 3A, and the importer had already exhausted the value limit mentioned in the licence for Appx. 3 Item. The Adjudicating Authority, thus, ordered confiscation of the goods vide Section lll(d) of the Customs Act, 1962 granting option to pay fine of Rs. 1,00,000/ - in lieu of confiscation.