1998 (3) TMI 288

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....of the goods in terms of the Open General Licence as mentioned in Appendix 6, List 8, Part I, Entry No. 481 of the Import-Export Policy, 1990-1993. The goods in this appendix are permitted to be imported by Actual User (Industrial). Actual User (Industrial) is defined in sub-para (3), para 7 as an industrial undertaking engaged in the manufacture of any goods for which he holds a valid licence or registration certificate from the appropriate Government authority wherever applicable. The department noted that, when the goods were imported, the importer was not in possession of a licence under the Drugs and Cosmetics Act to manufacture drugs and therefore form the view that the importer was not an Actual [user] (Industrial). Notice was issued....

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....chnical violation of the Policy. He further said that in the circumstances of the case he was inclined to take a lenient view that the imposition of penalty would be Rs. 25,000/- of the import. His order with regard to the notification is as follows : "The subject imported goods referred to as Rifampicin-S in the subject Bill of Entry, shall be assessed with reference to the appropriate rate of duty applicable to Actual Users after depositing of the said penalty imposed in this order". 5. The department has appealed this order on two grounds. The first is that although the Collector had said that the importer was not an Actual User, he has not passed in orders with regard to liability to confiscation of the goods. The second is t....

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....icin, under official approval by the Government in its factory which was licensed far much later by the Drugs Licensing Authority, Madhya Pradesh. Therefore, whether at the time of importation the importer had satisfied the requirement of being an Actual User (Industrial) or not, it cannot be disputed that before the goods were cleared, it had complied with the requirements that were necessary for considering to be an Acutal user (Industrial). The Collector has himself noted this. It is true that the Collector has not specifically said whether the goods are liable to confiscation and if so there has not fixed redemption fine. It is, however, evident that he intends to say that there is no case for ordering confiscation, although technically....