Locus standi of a Letter of Authority holder must be examined before sustaining absolute confiscation of imported goods.

A Letter of Authority holder, described as an agent of the licence-holder, cannot seek release of imported goods without first establishing a legally sustainable right under the licence and authority terms. The claim to locus standi had to be examined before sustaining absolute confiscation, because the goods remained the property of the licence-holder under the authority conditions. As the authorities had not considered this basic issue and the record was incomplete, the matter required fresh consideration after access to the relevant records and an opportunity of hearing.

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Issues: Whether the Letter of Authority holder had locus standi to seek release of the confiscated goods, and whether the order of absolute confiscation could be sustained without examining that claim and the relevant records.

Analysis: The Letter of Authority expressly described the holder as an agent of the licence-holder and provided that the imported goods remained the property of the licence-holder at the time of customs clearance and thereafter. On that basis, the claimed right of the Letter of Authority holder to obtain release of the goods required examination of the contractual and licensing conditions governing the authority. The authorities below had not considered this basic issue, and the available record was incomplete for deciding the matter finally.

Conclusion: The issue of the appellant's locus standi and the maintainability of absolute confiscation required fresh consideration by the appellate authority.

Final Conclusion: The impugned orders were set aside and the matter was remitted for reconsideration after giving the appellants an opportunity of hearing and access to the relevant records.

Ratio Decidendi: A Letter of Authority holder, being only an agent under the authority terms, cannot claim release of imported goods without first establishing a legally sustainable right to do so, and such locus standi must be examined before sustaining absolute confiscation.

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