2002 (2) TMI 1029 - AT - Customs

Import of Beef Tallow under Open General Licence upheld, penalties dismissed

JAIN SHUDH VANASPATI LTD. Versus COLLECTOR OF CUSTOMS, BOMBAY

The case involved an appeal regarding the import of Beef Tallow under Open General Licence (OGL) challenged by the Collector of Customs. The Tribunal ... EXIM - Beef Tallow - Precedent Issues:1. Import of Beef Tallow under Open General Licence.2. Validity of imposing penalty based on ITC Public Notice 27/83.3. Interpretation of statutory right to import under OGL.4. Consideration of Tribunal's previous decision and Supreme Court dismissal.Issue 1: Import of Beef Tallow under Open General LicenceThe case involved an appeal against the Collector of Customs' order stating that Beef Tallow could not be imported under Open General Licence due to being canalised by an ITC order. The Tribunal had previously held in another case that Beef Tallow could be imported under OGL. The Collector initially confiscated the goods but later ordered re-export based on subsequent public notices. The Tribunal reiterated that the right to import under OGL is a statutory right and cannot be overruled by public notices. The Supreme Court had dismissed an SLP against the Tribunal's earlier order, affirming the legality of importing Beef Tallow under OGL.Issue 2: Validity of imposing penalty based on ITC Public Notice 27/83The penalty imposed on the appellants was challenged as a consequence of ITC Public Notice 27/83, which had not been considered in the Tribunal's earlier orders. The JCDR contended that the penalty was justified based on this notice. However, the appellants argued that if the import under OGL was lawful, penalties should not apply. The Tribunal held that once the import was deemed lawful, penalties like confiscation and personal penalties should not be imposed, especially considering the Supreme Court's dismissal of the SLP against the Tribunal's decision.Issue 3: Interpretation of statutory right to import under OGLThe crux of the issue was whether the import of Beef Tallow under OGL was permissible after it was canalised by a public notice. The Tribunal had previously ruled that the right to import under OGL is a statutory right that cannot be overridden by public notices. The Tribunal's decision was upheld by the Supreme Court, emphasizing that public notices cannot diminish the statutory right to import under OGL.Issue 4: Consideration of Tribunal's previous decision and Supreme Court dismissalThe Tribunal considered its previous decision where it held that importing Beef Tallow under OGL was valid. The Tribunal noted that the Supreme Court had dismissed the SLP against its earlier order, affirming the legality of importing Beef Tallow under OGL. Given the similarity of facts in the present case to those already decided by the Tribunal, the appeal was allowed, setting aside the impugned order and emphasizing the statutory right to import under OGL.This comprehensive analysis of the judgment highlights the key legal issues, interpretations, and decisions made by the Tribunal regarding the import of Beef Tallow under Open General Licence, the validity of penalties based on public notices, the statutory right to import under OGL, and the significance of the Tribunal's previous decision upheld by the Supreme Court.