1990 (2) TMI 50 - SC - Customs

Whether the calcareous stone which has been imported by the appellant falling within the Tariff Item No. 25.15 of Schedule I, Appendix 1-B commonly known as I.T. Schedule is marble as mentioned in Entry No. 62 of the List of Restricted Items, Annexure 2, Part B of the Import and Export Policy for April 1988 to March 1991 and as such the import of calcareous stone made by the appellant being not covered under OGL, is liable for confiscation and penalty for illegal import without the specific import licence obtained from the respondent?

Held that:- the slabs of calcareous stone imported by the appellant are not marble as mentioned in Entry No. 62 of Appendix 2 of the Import and Export Policy for April 1988 - March 1991 and so it is covered by open general licence. The imported goods cannot be confiscated by the Government under Section 111(d) of the Customs Act, 1962 nor the appellant can be given the option to clear the said goods for home consumption on payment of fine of Rs. Five lakhs in lieu of confiscation under Section 125 of the Customs Act, 1962. The appellant cannot be said to have imported calcareous stones without an import licence and as such, there being no violation of the Import Control Policy the imposition of penalty of Rs. Ten lakhs under Section 112 of the Customs Act, 1962 is also unwarranted and not sustainable.

In the present case, the Tribunal has itself specifically stated that the appellant has acted on the basis of bona fide belief that the goods were importable under OGL and that, therefore, the Appellant deserves lenient treatment. allow the appeal and set aside the judgment and order passed by the Appellate Tribunal and direct the Tribunal to release the goods to the appellant forthwith. We also direct the Tribunal to release the personal bond given by the Appellant for a sum of ₹ 2,50,000/- on the basis of which one container was released as per order of this Court dated October 25, 1989 and also to release the appellant from payment of detention charges and demurrage for retaining the goods