1962 (1) TMI 2

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....e licensee sought to clear the goods covered by the licence when they arrived at the Madras Port. The Collector of Customs by the impugned orders found that the letter of authority produced by the petitioner was a bogus one and proceeded to state: "Investigation has also revealed that there is no firm at present by the name of Messrs Globe Engineering and Trading Co., New Delhi, and that no such letter of Authority has been issued by the Chief Controller of Imports against the Licence in question. As the licence is not in the name of the importer, the authority to import the goods can only be under a valid letter of Authority. The letter of Authority can only be considered as having been made in contravention of the Import Trade Control ....

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.... delivery of the materials so imported against payment of value and commission with expenses and that the licensee would provide the petitioner with a letter of authority in its favour. The rest of the terms of the understanding are not quite material. It is on such an understanding, says the petitioner, that the goods were imported under licence. The petitioner also brought it to the notice of the Chief Controller of Imports and Exports that upto April 1959 the licensee had not fulfilled its promise to send a sum of Rs. 12,000/- in spite of demands and that it found itself entangled with the Shippers by having guaranteed payment of the drafts in the event of the drawee failing to honour the same. It is in the context of these circumstances....