1996 (11) TMI 67 - SUPREME COURT

Whether, in the event of the contravention of a post-importation condition of an import licence, it was open to the Customs authorities [to] confiscate imported goods under Section 111(o) of the Customs Act?

Held that:- The communication of the Central Board of Excise and Customs, dated 13th May, 1969 refers to the breach of the condition of a license and suggests that it may not be possible to take action under Section 111(o) in respect thereof. It is true that the terms of the said Exemption Notification were made part of the appellants' licences and, in that sense, a breach of the terms of the said Exemption Notification is also a breach of the terms of the license, entitling the licensing authority to investigate. But the breach is not only of the terms of the license; it is also a breach of the condition in the Exemption Notification upon which the appellants obtained exemption from payment of Customs duty and, therefore, the terms of Section 111(o) enable the Customs authorities to investigate. Appeal dismissed.