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2010 (7) TMI 456 - HC - CustomsAdvance licence - Invocation of bank guarantee - As long as the export obligation, discharge certificate is not produced before the Customs authority, they are entitled to invoke the provisions of the bond executed by the petitioner. However, in the instant case, the fact appears that there has been violation of conditions of the notification itself as it is stated that the office premises of the petitioner does not exist in the place given in the licence, which would obviously mean that there were no manufacturing factories - if there was no manufacturing unit available or any such manufacturing unit as would have the capacity to manufacture the goods worth crores of rupees, how was the imported stainless steel utilized. The question would not only be misrepresentation while getting the Advance Licence but also about the utilization of the imported material, which would squarely fall under Section 111(o) of the Customs Act. - decision in Titan case, (2002 -TMI - 46461 - SUPREME COURT OF INDIA), also does not help the Appellants. There can be a scope of enquire and the summons issued under Section 108 of the Customs Act for effecting the enquiry such as these cannot be bad for the lack of jurisdiction. The Tribunal fell in error in permitting the clearance of the goods on merit rate. By doing so the Tribunal has virtually set at naught the purpose behind issuance of an exemption notification. If the Respondent is not an actual user he would not be entitled to utilize the license. The license having been secured by adopting fraudulent method would not confer any right on the importer and as such he cannot be allowed to plead any equity. Therefore we find that the order passed by the Tribunal is not sustainable and liable to be set aside. basis for discharge of the export obligation was existence of a factory, which does not exists, address given was a false address - false declaration and obtained a license, the importer cannot be permitted to say that the imported material is freely importable under OGL - Tribunal fell in error in permitting the clearance of the goods on merit rate - Respondent not an actual user he was not entitled to utilize the license - violation of a notification issued under the Customs Act - no error in the action of the respondent in invoking the Bank Guarantee
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