2003 (4) TMI 476

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....he licensing authority issued to it three licences, two in 1992 and the third in 1994. Utilising these licences, the appellant imported the yarn in 1993 and 1994 and cleared them without payment of duty and claimed exemption contained in Notification 204/92. Subsequently, the Customs authorities concluded that the appellant had manipulated in its favour, in the export promotion copy of the shipping bills which it had furnished to the licensing authority as proof of its export, weight in one case and the composition of the fabrics in two other cases. On these facts being reported to the licensing authority, a notice was issued to the appellant proposing to suspend these licences. By order passed on 29-11-1995, the Deputy Director General of ....

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....sole contention of the counsel for the appellant is that, by virtue of the application of the ratio of the judgment of the Supreme Court in East India Commercial Co. Ltd. v. C.C., Calcutta - 1983 (13) E.L.T. 1342, the order cancelling the licence only takes effect after it is issued and will therefore not affect the validity of the licence insofar as imports are made thereafter. It would not have any effect on the goods which were imported before the licence was cancelled. He also contends that as of today the licence had not been cancelled, the order of the adjudicating authority cancelling the licences having been set aside. Therefore the licences continued to be valid and remain valid today. 4. The departmental representative emp....

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....uch cancellation would not have rendered the import illegal prior to such cancellation. In this case, as we have noted, the cancellation of the licences having been set aside by the appellate authority, and further action as directed by that authority not having been taken, the consequence follows that the licences, after their issue, continue to be, and are, valid. In fact, the case can be decided on this ground alone. 7. We will now consider the three decisions that the departmental representative relies upon. The judgment of the Madras High Court in East West Exporters v. ACC - 1993 (68) E.L.T. 319, holding that a forged or falsified licence is void ab initio is irrelevant to the facts before us, where no such forgery or falsific....