TaxTMI 
TaxTMI 
1986 (2) TMI 215
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....eces and Lever Clock Movements etc. They were registered with the DGTD for manufacture of Analogue Quartz Clocks. They placed two orders with the Swiss suppliers for 5,000 sets and 22,000 sets of I.C. and Quartz required for their Quartz Clocks to be supplied in August and September, 1980. The foreign suppliers despatched by air freight five thousand sets of Integrated Circuits and Quartz. In the meantime on 3rd July, 1980 by a Public Notice No. 25-ITC(PN)/80 the Integrated Circuits and Quartz Crystals came to be canalised. When the appellants sought clearance of 7,000 sets of Integrated Circuits and Quartz, the same was objected to by the Customs on the ground of they being canalised. The Additional Collector of Customs who held the enquir....
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....e prevented the appellants from entering into factory premises, and as such, requisite steps for opening of Letter of credit could not be taken earlier to 3-7-1980. In the said circumstances there was hardly any justification to levy a fine of Rs.5,000/-. (e) The Public Notice No. 25/80 dated 3-7-1980 was amended and the amendment carried out clearly establish that the Public Notice was intended to cover the components and modules etc., of Electronic watches. Finally, it was submitted that the licences issued was earlier to the Public Notice dated 3-7-1980, and therefore, the right conferred under the licence cannot be taken away by the Public Notice. The Public Notice has no statutory force whereas the licence was amended in exerci....
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....Section1. There is no evidence as to the date of the Gazette in which this Public Notice was published and also there is no evidence as to the date on which the Gazette was made available to the public. By this Public Notice certain amendments were effected to the Policy AM81. The amendment with which we are concerned was the one made to Appendix 8 and it reads: "After the existing S.No. 58 the following shall be added:- Semiconductor Complex Limited (SCL) 59. Components/Modules of Electronic watches, the following:-(emphasis is supplied by me) (a) Complete electronic modules for electronic watches of all types. (b) Following components of electronic watches [both for (digital) and (analogue) watches] (c) Large scale integ....
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....an be imported only by the canalising agency. Item 59 of Appendix 8 has not the effect of canalising Quartz Crystals used in clocks and time pieces. If the intention of the policy makers was to canalise the components and modules of electronic watches, clocks and time pieces, item No. 59 would have been components/modules of electronic watches, clocks and time pieces, the following: but such is not the entry. I, therefore, agree with the contention of the learned Advocate that the Public Notice did not have the effect of canalising the Integrated Circuits and Quartz Crystal of clocks, whether digital or analogue. According to the order-in-original Quartz and Integrated Circuits imported are Quartz and Integrated Circuits of clocks and not Q....
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....5-1980 was not for the import of the Integrated Circuits and Quartz Crystal used for the clocks for the manufacture of which the appellants were registered with the DGTD. There cannot be any quarrel as to the proposition contended by Shri Pal that it is the prerogative of the Government to change the Policy and it could even take away the rights conferred under the licences issued prior to the date of change of the Policy. But then in orter to take away the rights conferred under the licences the Government shall have to issue notifications or orders in exercise of the powers conferred under the Import/Export Control Act or Import Control Order. The Public Notice or even the Policy are not statutory and they have no statutory force. If they....
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....dia, in the Ministry of Commerce and Industry brings out this distinction thus: "In the past the half yearly publication on Import Control, popularly known as the "Red Book" has included not only a statement of policy for the ensuing six months but also a reproduction of various notifications relating to Import Control and detailed information on points of procedure". It is true the Chief Controller made an affidavit in the High Court that the policy-statements are issued under Section 3 of the Act. But, as we have said, that is only on information which has no support either in the form adopted or the practice followed or the matter incorporated in the notifications. We have no hesitation in holding that public notices are not orders....