M.M. Exports And Anr. vs Cc on 29 September, 1995
The appellants were in possession of valid licence covering the goods in question and, therefore, the adjudicating authority, in fairness, if he had taken a view that the goods were not freely importable; public notice 278 dated 29.2.1992 notwithstanding, should have afforded the appellant an opportunity to produce the necessary licence for clearance of the goods. Since no such opportunity was given, the order is liable to be set aside. The ld. Consultant further submitted that EX-IM SCRIPS which are freely transferable were purchased by the appellant and the Calcutta High Court in the case of Mis. Enterprise International Ltd. v. Collector of Customs by judgment dated 9.3.1993 clearly held that the goods in question would be permissible for clearance under EX-IM SCRIFS and struck down the circular dated 17.12.1992 issued by the office of the Director General of Foreign Trade to the effect that the goods would not be permissible for clearance against EX-IM SCRIPS if they were endorsed in general terms for import of items listed in appendix 3 or appendix 5 part A of AM 90 to 93 Policy. The Calcutta High Court also took note of the fact that the customs authorities had allowed the goods in question to be released against EX-IM SCRIPS/REP licence up to 3.1.1993. The' ld. Counsel, therefore, submitted that the personal hearing was held only for the limited purpose of considering the appellants pleas as to whether the goods in question would be permissible for release without a licence and if the Department did not agree with the appellants contention, the Department should have afforded the appellants an opportunity to produce the licence. The appellant had acquired a valid licence at the relevant time and, therefore, the ld. Consultant prayed that the impugned order should be set aside and the matter remitted for reconsideration of the issue by the adjudicating authority by considering the validity and acceptability of the EX-IM SCRIPS which the appellant had procured for clearance of the goods in question.