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1992 (2) TMI 234

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..... ted:- 26-2-1992 - M.H. Kania, C.J. V. Ramaswami and N.M. Kasliwal, JJ. REPRESENTED BY : Shri Harish Salve, Advocate, for the Appellants. Shri Tulsi, Addl. Solicitor General, for the Respondents. [Judgment per: Kasliwal, J.]. Special leave granted. 2. This appeal has been filed against the judgment of the Bombay High Court dated 18-6-1991. The short controversy raised in the present case is whether the Cloves imported by the appellant fall within Item 169 in List 8 of Appendix 6 or fall within Paragraph 167 of Chapter XIII of the Import and Export Policy April 1990 - March 1993. 3. Brief facts of the case are that the appellant obtained by transfer an Import Licence No. 3412179 dated 29th November, 1990 for Rs. 16,10, .....

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..... action of the Customs Authorities in not permitting clearance cannot be faulted and the licence relied upon by the appellant was not valid for the import of cloves. 5. It was contended by Mr. Harish Salve, learned Counsel for the appellant that though the use of clove as a spice is not in much dispute, but at the same time it cannot be disputed that clove is a Drug/Drug intermediate. It was submitted that in popular sense and trade parlance, clove is also used as drug intermediate and that being so the appellant was entitled to import the cloves against the additional licences under Para 220 of the Policy. It was also submitted that in the Import Policies of 1982-83 to 1985-86 cloves were specified as crude drug. It was thus submitted th .....

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..... submitted by Mr. Tulsi, Learned Additional Solicitor General that Para 167 of the Policy clearly provided that import of cloves could be allowed only against licences and there was no question of applying Item 169 of List 8 Appendix 6 which provided for Drugs/Drug intermediates not elsewhere specified. It was also submitted that in the common parlance as well as in trade and commerce, the cloves are always considered as spice and not as a drug or drug intermediate. It was submitted that the cloves are sold as spice in a Kirana shop and not as drug in a chemist shop. 9. In order to appreciate the controversy raised before us it would be necessary to reproduce para 167 contained in Chapter XIII and Item 169 appearing in Part I of List 8, .....

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..... ort proceeds i.e. the foreign exchange realisation in his own name, or exports through the Consortium of Spices Exporters, membership of which is to be confined only to dealers of spices who want to avail of the facility for exports through Consortium. Documents required to be furnished along with the application for grant of licences for spices shall be as provided in sub-paragraph 166(6) above. (3) Actual users who have no past imports will also be eligible for licence on the recommendation of the sponsoring authority and approval by the Headquarters Supplementary Licensing Committee. (4) Applications for import of spices are to be made to the licensing authority concerned." Item 169 in Part I of List 8, Appendix 6 :- Drugs/Drug .....

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