TaxTMI 
TaxTMI 
1992 (7) TMI 82
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for importation of components like Zip Fastener, Button Lining etc. to be used in the export products. An advance licence was issued to the petitioner with an attached list showing the items allowed to be exported. The advance licence along with the duty exemption entitlement certificate was received by the petitioner on or about 5th May, 1992. 2. The petitioner had earlier entered into a contract for supply of leather jackets to M/s. Chico Diefusion of 9 Rue Duppies, 75003 Paris, France. The importer opened an irrevocable letter of credit bearing No. D.O.109/024/340 dated 1-4-1992 through the Bank Society De Banque Suisee Swiss Bank of Corporation, Geneva - TLX 42235 to Allahabad Bank International Branch, Calcutta. According to the te....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oner's contention was that the entire export order would be frustrated and valuable foreign exchange lost if the goods were not allowed to be shipped. The petitioner, therefore, asked for permission to ship their leather jackets. An order was passed allowing the petitioner to export leather jackets and the Customs Authorities were directed to allow the petitioner to export the jackets. The petitioner, however, was directed not to withdraw a sum of Rs. 10 lakhs from Allahabad Bank, International Branch, Park Street, Calcutta, where the sale proceeds were to be received. That interim order has been complied with. The goods have been despatched and the security for the export of the goods has been retained. The Court has been informed that a s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f any customs area for the purpose of being exported, contrary to any prohibition imposed by or under this Act or any other law for the time being in force; *** *** *** (1) any dutiable or-prohibited goods or goods entered for exportation under claim for drawback which do not correspond in any material particular with the entry made under this Act or in the case or baggage with the declaration made under Section 77 in respect thereof; *** *** *** Sec. 120 - Confiscation of smuggled goods notwithstanding any change in form, etc. (2) Where smuggled goods are mixed with other goods in such manner that the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rt leather jackets to foreign country. If the Jacket is made entirely of indigenous materials, the petitioner will not be entitled to import foreign made materials. On behalf of the Customs Department, nothing was shown which prohibited export of leather jackets made in India. Therefore, clause (d) of Section 113 is not attracted. 10. Clause (i) of Section 113 also relates to "any dutiable or prohibited goods" which do not correspond in any material particular with the entry made. The contention of the petitioner, which has not been refuted by the respondent, is that the goods are neither dutiable nor prohibited. So, if there is any mis-description, the goods are not liable to confiscation. 11. Similarly, sub-section (2) of Section 12....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oods and payment of redemption fine and personal penalty of Rs. 5 lacs. That part of the order will stand quashed. Since the order of confiscation of the goods is not justified in law under clauses (d) and (i) of Section 113 of the Customs Act, the order of confiscation as well as the order imposing redemption fine Rs. 7,50,000/- and personal penalty of Rs. 5 lacs are also quashed. 14. The Adjudicating Officer has also made certain recommendation for taking steps for cancellation of the licence by the Licensing Authority. I do not pass any order in respect of that. I however, direct if any steps are taken by the Licensing Authority, the petitioner should be given a hearing before passing any such order. 15. I also make it clear that t....