TMI Blog1985 (4) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... ne. This licence was issued to M/s. General Spares Industries Pvt. Ltd. as actual users under the Import Policy for registered exporters. 3. M/s. General Spares Industries Pvt. Ltd. applied to the Deputy Collector of Customs for issuing in favour of the petitioner a Letter of Authority for importing the said goods under the said Import Licence. Accordingly a Letter of Authority dated 2nd November 1974 was issued in favour of the petitioners who were accordingly authorised to act as agents of M/s. General Spares Industries Pvt. Ltd. to import the said goods and to open letter of credit and make remittances in Foreign Exchange against the said Import Licence. 4. In pursuance of the said letter of authority the petitioners between November ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of import of the said goods. 5. Thereafter two writ petitions were filed in this Court. Writ Petition No. 1344 of 1976 was filed by M/s. General Spares Industries Pvt. Ltd. challenging the order of cancellation of licence while Writ Petition No. 1379 of 1976 was filed by the petitioners challenging the show cause notice served on them. By an order dated 13th 3uly 1979 Writ Petition No. 1344 of 1976 was made absolute on the ground that cancellation of licence had been effected without complying with the principles of natural justice. Thereafter M/s. General Spares Industries Pvt. Ltd. were granted a hearing and a fresh order was passed on 19th January, 1980 under which the previous order of cancellation was maintained. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he licence in the present case was obtained by M/s. General Spares Industries Pvt. Ltd. on misrepresentation and/or fraud, the licence was not a valid licence right from the inception and hence the imports in question which took place were under an invalid import licence. This submission, however, is contrary to the decision of the Supreme Court in the case of M/s. East India Commercial Co. Ltd., Calcutta v. Collector of Customs, Calcutta reported in A.I.R. 1962 S.C. 1893 = 1983 E.L.T. 1342 (S.C.). The Supreme Court in that case was required to consider a show cause notice issued to the licence-holder for confiscation of goods on the ground that the licence-holder had committed breach of the conditions of the Import Licence The Supreme Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts (Control) Order, 1955 which is issued under the Imports and Exports (Control) Act, 1947. Under Clause 9 of the Order a provision is made for cancellation of licences granted under the Order, inter alia, on the ground that the licence has been granted by fraud or misrepresentation. Under sub-clause (3) of Clause 9, the Chief Controller of Imports and Exports, by special order in writing may suspend the operation of any licence granted under the Order, where proceedings of cancellation of such licence have been initiated under sub-clause (1). This would indicate that the licence would remain valid until it is cancelled. In order, therefore, to prevent the use of such licence while proceedings for cancellation are in progress, sub-clause (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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