Tribunal's Decision Overturned for Lack of Notice: Petitioners' Redemption Fine Refunded

The Court set aside the Tribunal's decision due to lack of notice to the petitioners, ruling that the Tribunal exceeded the scope of the show cause notice by relying on new reports without prior notification. The goods were already cleared by interim order, and the Tribunal's decision and the Additional Collector's order were overturned. The redemption fine of Rs. 1,50,000 was to be refunded to the petitioners, with no costs awarded.

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Issues:
Import of canalised items under OGL, reliance on test reports, challenge to tribunal's findings without prior notice.

Analysis:
The petitioners imported goods described as Diethylene Diamine Hexahydrate under two REP licenses. Customs authorities refused clearance, claiming the goods were canalised items. The Additional Collector held the goods were canalised, leading to confiscation and a fine of Rs. 2,00,000. Appeals to the Tribunal resulted in a reduced fine of Rs. 1,50,000. The petition challenged the Tribunal's decision under Article 226 of the Constitution.

The petitioners argued that the Tribunal exceeded the show cause notice's scope by relying on a new report from the Chief Chemist without notifying the petitioners. The Assistant Drug Controller's certificate stated the goods were not drugs but fit for chemical use. The Tribunal dismissed the Deputy Chief Chemist's report due to lack of analytical data. Despite reports showing water content, the Tribunal concluded the goods were anhydrous, a new claim not raised in the show cause notice. The Court agreed that the Tribunal's new case without notice was unjust.

The Court clarified it wasn't determining the goods' nature but set aside the Tribunal's decision due to the lack of notice to the petitioners. The goods were already cleared by interim order. The Tribunal's order and the Additional Collector's order were overturned, and the redemption fine of Rs. 1,50,000 was to be refunded. No costs were awarded.

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