2001 (3) TMI 420

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....learance, on OGL under heading 071290. The Custom House, pursuant to clarification dated 17-9-1996 by JDGFT, ascertained the moisture content which was found to be 64% by the Custom House Laboratory and therefore, held that the goods under import were not to be considered 'Dried Garlic' as declared by the importer; it was not freely importable under heading 07129004 of ITC (HS) and it would fall under 07032000 of the ITC (HS). Aligned EXIM Policy and import thereof is restricted. The value declared, also did not appear to be correct, in view of the price of USD 600 per MT CIF at which such goods were cleared at Tuticorin Port. Therefore the goods were held to be liable for confiscation under the provisions of Section 111(d) and 111(m) read ....

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....y question was referred by the appellants or the Customs authorities to the DGFT for interpretation of the policy. All along the case of the appellants was that at the time of entry into contract of import of Dried Garlic, it was a freely importable item, without any limitation regarding moisture content by volume or otherwise; this clarification made on 17-9-1999 cannot therefore be treated as an amendment of the Policy in terms of Section 5 of the Foreign Trade (Development and Regulation) Act; it is for the Central Government to issue the change in Policy and therefore the Custom authorities act in treating the cases on hand as coming within Section 111(d) of the Customs Act was wrong in law. It was also held that the action of DGFT auth....