TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Supreme Court Remands Government Order on Import Licences for Proper Review</h1> <h3>BHARAT BARREL & DRUM MFG. CO. Versus COLLECTOR OF CUSTOMS, BOMBAY</h3> BHARAT BARREL & DRUM MFG. CO. Versus COLLECTOR OF CUSTOMS, BOMBAY - 1999 (110) E.L.T. 396 (SC), 1971 AIR (SC) 704, 1971 (3) SCC 170 Issues:1. Interpretation of import licences for steel sheets.2. Compliance with quality standards for imported goods.3. Authority of Collector of Customs and Central Board of Excise and Customs in imposing penalties.4. Application of 'prime quality' condition to imported goods.5. Proper investigation and consideration of appeals by the Central Government.Detailed Analysis:1. The judgment involves the interpretation of import licences for steel sheets obtained by a private limited company engaged in manufacturing drums and barrels. The company imported steel sheets under two licences with specific terms and conditions regarding the quality and type of sheets allowed for import.2. The issue of compliance with quality standards for the imported goods arose when the Chief Customs Appraiser at Bombay raised concerns about the quality of the imported steel sheets. The Collector of Customs and the Central Board of Excise and Customs found that the imported sheets did not meet the criteria of 'prime quality' as required by the licences, leading to penalties being imposed on the company.3. The authority of the Collector of Customs and the Central Board of Excise and Customs in imposing penalties for non-compliance with import regulations was questioned. The Collector imposed penalties based on the perceived deviation from the 'prime quality' standard, while the Board upheld the confiscation of goods due to non-alignment with quality requirements.4. The application of the 'prime quality' condition to the imported goods was a central point of contention. The Collector and the Board based their decisions on the absence of 'prime quality' in the imported sheets, overlooking the specific conditions mentioned in the licences and the retrospective nature of the quality standard introduced by the Iron and Steel Controller.5. The judgment highlighted the lack of proper investigation and consideration of the appeals by the Collector and the Board. The Central Government, in its revision, failed to thoroughly examine the merits of the appeals and did not provide the company with adequate opportunity to substantiate their claims regarding the compliance of the imported goods with the licence specifications.In conclusion, the Supreme Court set aside the Central Government's order and remanded the cases for proper consideration based on the terms of the import licences and the permissible tolerance criteria. The judgment emphasized the importance of a thorough investigation and adherence to legal procedures in matters of import regulations and penalties.
TaxTMI 