TaxTMI 
TaxTMI 
1993 (1) TMI 148
X X X X Extracts X X X X
X X X X Extracts X X X X
....ad with Section 111(j) of the Customs Act, 1962. The brief facts are that the appellants imported a consignment of 17 cartons of ball bearings against the Import Licence issued by the Dy. Chief Controller of Imports & Exports in favour of Mount Abu Agro Industries, Gandhinagar, Distt. Sirohi, Rajasthan. The appellants, herein, effected the import on the basis of letter of authority from Mount Abu Agro Industries, in terms of para 118(1) of the Hand Book of Import Export Procedures, 1985-88. The goods on import were assessed to duty on the Bill of Entry filed by the appellants' Customs House Agents and the duty amount of Rs. 3,53,333/- was also paid thereon. However, before the goods could be physically examined and cleared, the Dock Intelli....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tly obtained Actual Users License. The proceedings culminated in the impugned order of the Collector. In his order, the Collector held that the appellants, herein, acted as an agent on behalf of M/s. Mount Abu Agro Industries, who are the license holders. The Collector also held that there is nothing on record to suggest any role played by the present appellants in obtaining the license fraudulently and it appeared that they acted in good faith. He also observed in the order that his order in this case is without prejudice to the right of the appellants, herein to take any legal action against either M/s. Mount Abu Agro Industries or Shri Mohan Kumar, proprietor of that firm to compensate them for importation of the goods and other charges ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or the department, contended that the department has made an enquiry with regard to the license and had found that it had been fraudulently obtained by producing bogus SSI Certificate which has been confirmed by the District Industries Authorities of Sirohi, Rajasthan. Therefore, the license is void ab initio. The licensee, therefore, having obtained the license by fraud, cannot authorise another and transfer ownership and, the Ld. SDR submitted the licensee cannot confer a better title on another than what he himself has. Rebutting the Arguments of the Ld. Consultant that the order of the Collector imposing penalty on Mohan Kumar, proprietor of Mount Abu Agro Industries, would show mat the person really existed as the proprietor of that fi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the goods imported against this license shall be used only for servicing and maintenance whether free or at price of the machinery, equipment manufactured by the licensee. The appellants, herein, had sought to import the goods on the basis of a letter of authority for which the appellants were to get their service charges plus interest on their investment of money, but it has been found by the department the SSI Certificate, on the basis of which the actual user license had been issued was a bogus Certificate and the District Industrial Authorities at Sirohi, Rajasthan also confirmed that they had issued no such Certificate. The department had, further, found that there was no such firm of the name of Mount Abu Agro Industries at 25, Gandhi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Yet another aspect which needs to be noted is that the decision of the Supreme Court in the case of East India Commercial Co. was distinguished by the Supreme Court in the case of Abdul Aziz v. State of Maharashtra reported in AIR 1963 (SC) 1470 holding that the earlier decision of the Supreme Court was under the earlier Import Trade Control Notification of 1948 whereas the provisions of the subsequent Import (Control) Order, 1955 were wider. 5. Therefore, it is found that the view taken by this Tribunal in the Omex (India) case cited by the Ld. SDR finds support in the Supreme Court decision in the case of Fedco (P) Ltd. (supra). In the Omex (India) case also, the factual position was same. In that case as well the license was obtained ....