COMMISSIONER OF CUSTOMS, AHMEDABAD Vs. RIDDHI PHARMA

JUDGEMENT

(1.) AFTER rejecting the Revenues request for staying operation of the order of the Commissioner (Appeals), we proceed to decide the appeals themselves, inasmuch as a short issue is involved.

(2.) THE respondents imported 1, 3 - Dichloro Propanol - 2, a chemical classifiable under ITC Code 29055900 and requiring a licence. The respondent produced licence issued by the DGFT authorities. However, Revenue noticed that instead of CTH 29055900, another code CTH 29051900 was mentioned in the said licence. Respondent is a regular importer of the said production of import and in licence issued for the subsequent imports, correct heading was mentioned.

(3.) COMMISSIONER (Appeals) while taking note of the fact that mentioning of incorrect heading was a mistake on the part of DGFT, extended the benefit to the assessee. For better appreciation, we reproduce the relevant paragraph of Commissioner (Appeals) : The issue to be decided is of the licences issued for import of 1, 3, Dichloro 2 - Propanol wrongly mentioning the ITC Code become improper licences. A perusal of the list of licences issued to them indicates that initially two licence were issued to them indicating the said item namely, 1,3 Dichloro 2 - Propanol indicating ITC Code as 29051900. Thereafter four licences have been issued to them for the same item namely 1,3, Dichloro 2 Propano, under ITC Code 29055900. Obviously, the Code mentioned in the initial to licences was wrong. The para 5.10(b) of the OIO highlights that there was a mistake committed by the DGFT in mentioning wrong ITC No. on the said licences. So long, as the licence was granted by the DGFT for 1,3 Dichloro 2 Propanol and the item imported was the same, it cannot be said that the licence does not cover the said item. The benefit of a licence cannot be denied merely because of a clerical error on the part of the DGFT. They have issued four correct licences thereafter for the same item. Mention of incorrect ITC Code is not fetal for the licence. Since licence permitted import of 1,3 Dichloro 2 - Propanol and the item imported was 1,3 Dichloro 2 - Propanol, the benefit of the licence cannot be denied. Therefore, the OIAs against which appeals are filed are set aside and appeals allowed.