Court orders cancellation & return of Bond/Bank guarantee. Importation of Combine Harvester components compliant with import policy.

The court allowed the petition, directing the cancellation and return of the Bond/Bank guarantee. No costs were awarded in light of the circumstances. The court found that the importation of components for "Combine Harvesters" was in compliance with the prevailing import policy, as the Registration Certificate permitted both manufacture and import of the items. The court distinguished a Supreme Court decision cited by the respondents, ruling that the provisional manufacturing permission did not affect the import rights, and there were no violations of the Customs Act.

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Issues:
Challenge to order of Collector of Customs confiscating imported goods under Section 111(d) of Customs Act, 1962 and imposing penalty for violating import policy.

Analysis:
Facts:
The petitioners sought to import components of "Combine Harvesters" in 1983, objected by customs. Court granted interim relief for clearance on furnishing bond and bank guarantee. Subsequently, customs sought to confiscate goods under Section 111(d) of Customs Act, imposing penalty of Rs. 37 lakh.

Arguments:
Petitioners argued import was in compliance with prevailing import policy as per Registration Certificate allowing manufacture of "Combine Harvesters" and permission to import components. Respondents contended provisional manufacturing permission did not entitle import of components, citing a Supreme Court decision allowing customs to investigate import policy violations.

Findings:
Court noted Registration Certificate endorsed for manufacturing "Combine Harvesters" and imported items were components for the same. Provisional manufacturing permission did not affect import rights. Import policy allowed actual users to import components for permitted items. No objection raised by Import Control Authorities. Supreme Court decision cited by respondents was distinguishable and not applicable to the case. Importation deemed valid as per import policy with no Customs Act violations.

Order:
Petition allowed, directing cancellation and return of Bond/Bank guarantee. No costs awarded due to circumstances.

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