COLLECTOR OF THE CUSTOMS Vs. SHAMSUR RAHMAN

JUDGEMENT

(1.) This appeal by special leave arises out of a judgment of a Bench of the Dacca High Court in Writ Petition No. 315 of 1967. Leave was granted to examine the question as to whether the respondent after having obtained from the Chief Controller of Imports and Exports a permit to import complete units of Cold Storage and Ice Plants as well as G.I. pipes and G.P. sheets of the value of Rs. 2,26,000.00 committed any offence under section 167(8) of the Sea Customs Act by importing G.I. pipes G.P. sheets only of the total value of Rs. 2,19,000/-.

(2.) Facts necessary for disposal of this appeal may be stated thus: the respondent who has been carrying on business under the name and style of Kaptai Cold Storage and Fishing Industry Ltd., with a view to set up a Cold Storage Plant applied for and obtained a permit for importing complete units of Cold Storage and Ice Plant. In further clarification of the licence it was mentioned item-wise cold storage machinery including compressor, electric motor wires, cables and accessories, ice plant air conditioner, G.I. pipes copper pipes, G.P. Sheets, Cork Breaks, water pump, cooling condenser, Air Cooling unit of more than 3 tons and deep freezers, The licence was specifically issued under the head 'Industrial Consumer'. Further condition of the licence was that the goods imported must not be utilised for any purpose other than industrial consumption by the licencee. On the basis of this permit the respondent imported only G.P sheets and G.I. pipes of the approximate value of Rs. 2,19,00,000 and none of the other items mentioned in the licence, necessary for setting up cold storage and ice plants. On arrival of the goods the Customs Authorities prosecuted the respondent for an offence under section 167(8)(b) of the Sea Customs Act on the allegation that although the permit was given for importing goods of the value of Rs. 2,56,000/- mainly for the import of capital machinery to set up Cold Storage and Ice Plant, the respondent imported G.P. sheets and G.I. pipes of the total value of Rs. 2,19,000/- leaving hardly any margin for the importation of the machinery for the Cold Storage and Ice Plant. It was further alleged that according to the specifications supplied G.P. sheets and G.I. pipes could not exceed of the value of Rs. 6,000/-. The respondent was asked to show cause as to why penal action under section 167(8) (b) of the Sea Customs Act should not be taken against him. The respondent showed cause. The Customs Authority, however, convicted him on the said charge and the goods of each of the three consignments were ordered to be confiscated. The respondent by filing a writ petition in the Dacca High Court being Petition No, 315 of 1967 challenged the legality of the Order Nos. 463, 728 and 877 dated July 7, 1965, September 22, 1965 and November 17, 1965 respectively passed by the Collector of Customs, Custom House, Chittagong.

(3.) The appellants contested the said writ petition by filing an affidavit-in-opposition contending, inter alia, that Industrial licences are issued to Industrial Consumers on the recommendation of the Director of Industries for importation of industrial goods for use in the particular industry and in the instant case, the Director of Industries and the licensing authority categorically stated that the G.P. sheets, G.I. Pipes beyond Rs. 6,000.00 were not at all required by the Cold Storage and Ice Plant and this was a clear ease of misuse of industrial licence for other purposes than for setting up of an industry; and requested the Customs Authorities not to release the goods. It was stated that penal actions taken by the Customs Authorities were justified and the same were in accordance with law. It was further stated that show cause notices were duly issued to the respondent before adjudication but the respondent did not avail of the opportunity It was asserted that respondent by importing, huge quantity of G.I. pipes and G.P. sheets not necessary for setting up the proposed Cold Storage and Ice Plants, abused the industrial licence granted to him.