TaxTMI 
TaxTMI 
1963 (2) TMI 32
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....y the Association. The licence was issued subject to the condition that the goods would be utilised only for consumption as raw material or accessories in the licence-holders' factory and that no portion thereof would be sold to any party. The Association could not arrange for the necessary finances and therefore had the goods imported through Warden & Co., who financed the transaction. Part of the goods received was utilised in accordance with the condition of the licence, the rest was however sold by the said Warden & Co., as a result of the correspondence ending by a letter dated November 13, 1956, from the appellant as Chairman of the Association to Warden & Co. The relevant portion of this letter is : "In this connection we have to inform you that as the price of Art silk yarn has fallen greatly it is not possible for our Association to take delivery of the balance goods. As such, you are therefore requested to dispose of the balance goods lying with you in such manner that our Association suffers no loss whatsoever, but gets a net profit of at least 4% on these goods." After the disposal of the goods Warden & Co., did pay to the Association a sum of Rs. 5,040/- by way o....
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....ntrol imports and exports." Section 2 says that in the Act, `import' and `export' means respectively bringing into and taking out of India by sea, land or air. Section 3 empowers the Central Government, by order published in the Official Gazette, to make provisions for prohibiting, restricting or otherwise controlling, in all cases or in specified classes of cases, and subject to such exceptions if any, as may be made by or under the order, the import and export of goods of any specified description. Section 5, the penalty section, provided, at the relevant time, that if any person contravened or attempted to contravene or abetted a contravention of any order made or deemed to have been made under the Act, he would be punishable with imprisonment for a term which may extend to one year, or with fine or with both. The section was amended in 1960 and as a result of the amendment the contravening of any condition of the licence granted under the Order, was also made punishable. The amended provision, however, is not applicable to the present case. 6.Clause 5 of the Order deals with the conditions of licence. Its relevant provisions read : "(1) The licensing authority issuing ....
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....ontent of the words `import' and `export' in the Act in the present case. 8.In Glass Chatons Importers & Users' Association v. Union of India, (1962) 1 SCR 862, it was contended that Section 3 of the Act, insofar as it permitted the Central Government to make the order contemplated by sub-clause (h) of Clause 6 of the order which provides for the refusal to grant a licence if the licensing autho- rity decided to canalize imports and the distribution thereof through special or specialized agencies or channels, was invalid. The contention was repelled, it being held that such a restriction on the right of carry on trade and to acquire property was not unreasonable. The point urged before us was not argued in that case, but the case dealt with the provision in the order relating to the distribution of the imported goods through selected agencies, a stage subsequent to the actual import of goods and the Court held that provision good. 9.In Daya v. Joint Chief Controller of Imports and Exports, (1963) 2 SCR 73, it was held that the provisions contained in clause 6(h) of the order, empowering the Chief Controller of Imports and Exports to refuse a licence if the licensing authority....
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....f the Order empowering the licensing authority to attach a condition to the effect that the goods covered by the licence shall not be disposed of except in the manner prescribed by the licensing authority is a valid provision which comes within the powers conferred by Section 3 of the Act on the Central Government. 12.In support of the second contention that the Order does not provide for imposing the condition that the imported goods be not sold, reliance is placed on the decision in East India Commercial Co. v. Collector of Customs - 1983 (13) E.L.T. 1342 (S.C.) = (1963) 3 SCR 338. In that case, a condition was imposed in the licence prohibiting the importer from selling the imported goods. Sub-clause (1) of clause (a) of Notification No. 2/ITC/48, dated March 6, 1948, provided for imposing a condition in the licence to the effect that the importer shall not dispose of or otherwise deal with the goods without the written permission of the licensing authority or any person duly authorised. Sub-clause (v) of clause (a) of the Notification provided : "that such other conditions may be imposed which the licensing authority considers to be expedient from the administrative point....