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BADAR DURREZ AHMED, J (ORAL)

1. These writ petitions raise identical issues and, therefore, they are being disposed of together. We have heard the learned counsel for the parties. The main issue involved in these writ petitions is with regard to the question of provisional release of the goods which are essentially LED lights and Christmas lights. In both these cases, the goods were imported by the petitioners, who were the Import Export Code (IEC) holders and the petitioners had also filed the bills of entry. The goods have been detained by the customs authority on the ground that the goods belong to one Mr Amarnath Jindal and that the petitioners allegedly have an agreement with him for which they get a fixed amount for the imports. The sum and substance of the allegation is that the imports are being made by the said Mr Amarnath Jindal using the Import Export Code (IEC) of the petitioners. It is for this reason that the respondents contend that the goods are prohibited.

505. The relevant portion of the said judgment is as under:-

"15. Coming to the submission that the appellant is only a "name lender" for the import of goods by one Anwar, we shall presume for the time being that the appellant is only a name lender, but the actual beneficiary of the import is one Anwar. We called upon learned counsel for the respondents to place the relevant provision which prohibits such an activity on the part of an Import Export Code Number holder. Learned counsel for the respondents categorically made a statement that he is not able to place any such prohibition in law except Section 7 of the Foreign Trade (Development and Regulation) Act, 1992, which reads as follows :-
7. Importer-exporter Code Number. - No person shall make any import or export except under an Importer-exporter Code Number granted, by the Director General or the officer authorised by the Director General in this behalf, in accordance with the procedure specified in this behalf by the Director General".

The expression "import" occurring in the said section means bringing into India of goods as defined under Section 2(e). There is nothing in the law which requires an importer to be either the consumer or even the buyer of the goods also. Even otherwise, we are of the opinion that it is a matter of common sense that no importer would consume all the materials imported. Necessarily, the goods imported are meant for sale to the consumer, in which case, if an importer, who enjoys the facility of I.E. Code imports certain goods in the normal course of business on the strength of a contract entered by such importer with either a consumer or a trader who eventually sells the imported goods to consumers. We do not understand what can be the legal objection for such a transaction especially where the import of such goods is otherwise not prohibited by law......."