Valid import licence and proper utilisation record defeated confiscation for non-production of the original licence.

Confiscation of imported cartridges was considered unwarranted where the DGFT import licence was valid on the date the Bill of Entry was filed, and the utilisation record showed that the licence had earlier been used only for the permitted rifle and spare barrels. The Customs utilisation certificate and the existing arms licence corroborated that no unauthorised consignment had been imported against the licence. On that factual basis, non-production of the original licence for endorsement did not justify confiscation or penalty when the import remained within the authorised quantity and scope of the licence.

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Issues: Whether the confiscation of imported cartridges and the penalty were justified on the ground that the original DGFT import licence was not produced, despite the licence being valid on the date of filing the Bill of Entry and the import being supported by the arms licence and utilisation record.

Analysis: The Bill of Entry was filed while the import licence was still valid. The record showed that the appellant had earlier utilised the licence only for import of the rifle and spare barrels, and the utilisation certificate issued by Customs corroborated that no other consignment had been imported against the licence. The original arms licence produced before the Tribunal also showed endorsement only for the earlier rifle import and not for the disputed cartridges. On these facts, the Tribunal found no reason to doubt that the disputed import was within the quantity permitted under the DGFT licence and the arms licence. The absence of the original licence for endorsement, in the factual setting of this case, did not justify confiscation.

Conclusion: The confiscation and penalty were set aside, and the import was held entitled to clearance.

Ratio Decidendi: Where the import licence was valid on the date of import, the importer's utilisation record showed no excess or other unauthorised import, and the import was otherwise within the permitted arms licence and DGFT authorisation, confiscation solely for non-production of the original licence was not warranted.

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