2003 (11) TMI 87

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....rs under Clauses 8(1)(b) and (d) of the Imports (Control) Order, 1955 for a period of five licensing years. 3.Facts in brief, are that the first petitioner as actual user issued a letter of authority to an export house M/s. Abdullabhai Abdul Kadar, Bombay, for the import of OGL items in terms of Para 119 of the Handbook of Procedures 1985-88. Acting upon the authority, the said export house opened L.C. with a bank for the import of OGL items. When the goods arrived at the Indian port the petitioners failed to honour the letter of authority, resulting into non-clearance of the goods and the documents from the bank. The bank thereupon initiated proceedings and after obtaining the necessary approval from the licensing authority, cleared the g....

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....unsel submitted that Section 4-I(1)(a) of the Imports & Exports (Control) Act, 1947 provides for penalty on any person who uses or utilises imported goods contrary to the licence conditions. In the present case, the petitioners have not imported the goods and even if the goods imported by the L.A. holder is considered to be the goods imported by the petitioners, even then, no penalty can be levied under Section 4-I(1)(a) because the said goods have been sold to the actual user as per the licence conditions and there is no violation of the licence conditions. It was submitted that Section 4-I(1)(c) provides for penalty on any person who makes, incorrect or false declaration for the purpose of obtaining a licence or letter of authority by ame....

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....1985-88, the petitioners had authorised the export house to open a L.C. and make remittances on behalf of the petitioners for import of the OGL items. According to the petitioners they had requested the letter of authority holder to cancel the L.C. and not to import the goods. According to the petitioners, despite their objection, the L.A. holder imported the goods contrary to the instructions. If there is any inter se dispute between the petitioners and the export house, it was for them to resolve by initiating appropriate civil proceedings. Under Section 4-I of the Imports & Exports (Control) Act, 1947, liability can be fastened only if the conditions set out therein are fulfilled. In the present case, on perusal of Section 4-I of the Imp....