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of <h1>Imported goods deemed valid under advance licences issued pre-import; subsequent cancellation irrelevant; confiscation orders overturned.</h1> The appeals were allowed as the Tribunal held that the goods were validly imported under the advance licences issued before importation. The subsequent ... Confiscation - Penalty Issues involved: Import of polyester yarn under advance licences, validity of licences, confiscation of goods, imposition of penalty.In the present case, three appellants imported polyester filament texturised yarn under advance licences and claimed clearance without duty payment. The licences were issued in March 1985, and bills of entry were filed in November 1986. Subsequently, the licences were suspended and later cancelled. A show cause notice was issued alleging confiscation of goods and imposition of penalties. The Additional Commissioner, after hearing the importers, confiscated the goods, imposed fines, and penalties on the appellants and proprietors.Validity of Licences:The appellants argued that the orders of confiscation under Section 111(d) of the Customs Act, 1962 were invalid. They contended that since the goods were imported when the licences were valid, subsequent cancellation did not render the goods unlicensed at the time of import. Citing relevant judgments, they claimed that the goods were validly imported and not liable to confiscation.Confiscation and Penalty:The revenue argued that the licensing scheme in this case differed from cited cases, and the principles therein were not applicable. The Tribunal considered judgments regarding licence validity post-import and held that since the licences were cancelled after importation, the goods were validly imported. Consequently, the orders of confiscation under Section 111(d) were set aside. As the goods were not liable for confiscation, the imposition of penalties under Section 112 was deemed unsustainable.In conclusion, the appeals were allowed, the orders of the Additional Commissioner were set aside concerning the appellants, and any consequential relief was directed.
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