1990 (2) TMI 67 - HC - Customs

Summary

Issues:
1. Export of Intensive Care Respirator System with accessories
2. Interpretation of Export Control Order
3. Validity of refusal by customs authorities
4. Benefit of Exemption Notification No. 208, Customs
5. Bill of Entry description and restrictions on usage
6. Constitutional guarantee under Article 19 for trading by way of export

Analysis:
1. The petitioner sought relief for the export of Intensive Care Respirator System with accessories, a life-saving device, to a purchaser in Moscow. Customs authorities refused to endorse the shipping bill for export, citing doubts on legality.

2. The petitioner argued that under the Export Control Order, the subject goods could be freely exported to any country. The authorities' refusal was contested as incorrect interpretation of the law.

3. Customs officials sought clarification from the Joint Chief Controller of Imports and Exports, who advised against permitting the export. However, the court found no explicit law prohibiting the export of the item, thus ruling in favor of the petitioner.

4. The fourth respondent contended that the petitioner should not benefit twice by exporting an item previously imported duty-free. The court clarified that the Exemption Notification did not restrict export unless expressly prohibited by law.

5. The description of the consignment in the Bill of Entry as "for home consumption" was deemed a mere label, not a usage restriction. The absence of export restrictions in the Bill of Entry or Import Regulations supported the petitioner's right to export.

6. The judgment emphasized the promotion of exports while safeguarding the country's economy. The court highlighted the Constitutional guarantee under Article 19 for trading through export, allowing the export of items not explicitly prohibited by law.

In conclusion, the court granted the writ petition, directing customs authorities to endorse the shipping bill for the export of the Intensive Care Respirator System. The judgment highlighted the absence of legal prohibitions on the export of the item, emphasizing the petitioner's entitlement to relief under the law.