1995 (4) TMI 157 - AT - Customs

Tribunal rules in favor of appellants in import dispute, citing compliance with conditions.

OSWAL WOOLLEN MILLS LTD. Versus COLLECTOR OF CUSTOMS (P), BOMBAY

OSWAL WOOLLEN MILLS LTD. Versus COLLECTOR OF CUSTOMS (P), BOMBAY - 1995 (78) E.L.T. 673 (Tribunal) Issues:1. Confiscation of consignment of Australian Greasy Wool under Section 111(d) of the Customs Act.2. Compliance with para 12 of the conditions governing import under Open General Licence (OGL).3. Interpretation of the word 'import' in the context of registration requirements.Analysis:The appeal in this case challenges the Order-in-Original directing the confiscation of a consignment of Australian Greasy Wool valued at Rs. 8,63,716/- with an option to pay a fine of Rs. 42,000. The appellants sought clearance of the consignment under OGL but faced issues regarding the registration of the sale contract. The contract was submitted for registration after the shipment had taken place, leading to a contravention of para 12 of the conditions governing import under OGL. The appellant argued that registration was completed before the goods entered Indian territorial waters, citing the absence of a specific time limit in para 11 and referring to relevant legal precedents.The advocate for the appellant contended that the import should be considered to have occurred only when the goods entered Indian territorial waters, as per the decision of the Bombay High Court in a previous case. On the other hand, the JDR argued that import should be deemed to have taken place only after registration, emphasizing the importance of compliance with the conditions stipulated for import under OGL at the time of shipment. The JDR also referred to the Hand Book of Procedure to support the position that non-compliance with import conditions at the time of shipment renders the import invalid.Upon reviewing the submissions and records, it was established that the contract had been duly registered before the goods arrived in India and before the filing of the Bill of Entry. The key issue for determination was the interpretation and applicability of para 12 of the conditions under OGL. The tribunal analyzed para 11 in conjunction with para 12, concluding that import should be considered to have occurred when the goods entered Indian territorial waters. As the registration was completed before this point, the tribunal found the allegation of unauthorized import unsustainable and set aside the impugned order. The provisions of Para 79(2) of the Hand Book of Procedure were deemed irrelevant in this context, as they pertain to the validity of the license rather than the import itself.In light of the above analysis, the tribunal allowed the appeal, ruling in favor of the appellants due to the compliance with para 12 of the conditions governing import under OGL. The order for confiscation was set aside, and consequential relief was directed to follow.