Document Fragment View
Fragment Information
Showing contexts for: brandy in Bussa Overseas And Properties (Pvt.) ... vs Union Of India on 9 October, 1990Matching Fragments
1. Issues involved in these seventeen petitions under Article 226 of the Constitution of India are somewhat similar. For the sake of convenience all of them are disposed of by a consolidated judgment.
2. The issue in Writ Petition Nos. 685, 2031, 2518 and 3317 of 1986, 699, 2265, 3068, 3645 and 3975 of 1987, 1534, 2030, 2595 and 2717 of 1988 is whether the goods imported by the petitioners answer the description 'Ethyl Alcohol' mentioned in the respective REP licences. The goods imported are in most of the cases Whisky concentrate. In few cases it is Gin concentrate or Brandy concentrate, described in the Bill of Entry as '... years old Vatted Malt Scotch Spirit at 60% or 61% Vol.' 'Compound Alcoholic Preparations known as concentrated extract for manufacture of Alcohol Beverage' and 'Compound Alcoholic Preparation known as concentrated extract for manufacture of Alcoholic Beverages at Appro. 60/61% V/V.' or more or less respectively.
Show cause notice were not stayed. The Customs Authorities were left free to continue with adjudication proceedings. However, up till the last day of hearing of these petitions, the Customs Authorities had not completed adjudication proceedings in most of the cases if not in all cases.
5. As regards the first issue Shri Chhagla, the learned counsel for the petitioners stated that the REP licences are for the import of 'Ethyl Alcohol' at Sr. No. 165 in Appendix 3 Part A of 1984-85 Policy. The goods imported are concentrate Whisky, Gin or Brandy. The only pertinent question is whether or to the concentrates of Whisky, Gin or Brandy answer the description of 'Ethyl Alcohol' for which REP licences were issued. Answer to this question has got to be in the affirmative in view of the categorical averment of Shri S. P. S. Pundir, Dy. Collector of Customs in his affidavit dated 26th August 1986 in Writ Petition No. 2031 of 1986 that the goods imported are covered by the description 'Ethyl Alcohol'. Referring to the objection of the Customs Authorities, Shri Chhagla stated that the duty of the Customs Authorities is to check whether the goods imported are covered under the REP licence and not to further check whether the goods imported though covered under the REP licences are of the kind as are used as raw material by the Registered Exporter (to whom REP licences were originally granted) in the products exported. According to Shri Chhagla this was not the function of the Customs Authorities. In any event question such as whether the correct declaration of the raw-materials was given by the Registered Exporter, whether the REP licence was properly issued for the raw-materials actually used in the product exported and whether the REP licence was misused and if so what should be done about it all fall within the domain of the Licensing Authorities.
9. The first pertinent question is whether the goods imported herein which are commonly known as concentrated Whisky, Brandy or Gin answer the description of the goods in the REP licenses. As stated earlier the description of the goods in the licences is 'Ethyl Alcohol'. We do not think that in view of the affidavit of Shri S. P. S. Pundir dated 26th August 1986 in Writ Petition No. 2031 of 1981, it can be seriously disputed by the respondents that the goods imported herein are covered by the description 'Ethyl Alcohol'. Reference may usefully be made in this connection to paragraph 3(a) & (b) of the affidavit reading as under :
(2) whisky, brandy and gin; and (3) liqueurs and other spirituous beverages; compound alcoholic preparations (Known as concentrated extracts") for the manufacture of beverages.
Admittedly the case of the customs department is that the goods imported are classifiable under sub-heading 2 of Heading 22.09 whereas the case of the petitioners is that they are classifiable under sub-heading 3 of the same heading. Incidentally, this is also the dispute in Writ Petitions where as against the aforesaid headings and sub-headings, sub-headings of Entry 22.08.10 and 22.08.30 or 50 are involved. The said headings read as under :