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TMI Blog2006 (8) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... the surrender of imported raw material vide letter dated 20-6-1995 in accordance with the export and import Policy as well as in the Handbook of Procedures and also the provisions of the Foreign Trade (Development and Regulation) Act, 1992 and the Rules made thereunder. 2.Prior to this, what prompted the respondents to file the writ petitions was that the appellants started taking coercive steps against the respondents and contemplated initiating prosecution against the respondents under the Customs Act, 1962 and Foreign Trade (Development and Regulation) Act, 1992. According to the learned senior counsel appearing for the respondents, respondents were arrested and applied for bail which was granted to them whereas according to the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of time, the respondents filed an application on 25-4-1994 for permission to sell the same to an import licence holder or to nominate somebody to whom the raw material could be surrendered, as contemplated under the export and import policy. [According to Mr. M.M. Paikadey, the learned senior counsel appearing for the Union of India, the said application was not received by the department]. After waiting for a period of fourteen months, the respondents identified a party who was holding a transferable licence and was eligible to import raw material without any payment of customs duty without corresponding obligation to export under para 127 of the Hand Book of Procedures. The respondents surrendered the raw material to M/s. Abhinandan Expo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring to the provisions of the Act and the Rules, export policy and the procedure prescribed thereunder, came to the conclusion that para 128 of the scheme provides for regularisation of default in export obligation provided the default in fulfilment of export obligation was bona fide. That under the scheme, no stipulated time for making the application was prescribed and, therefore, there was a lacuna in the scheme. That it was open to the respondents to approach the licensing authority under para 128 of the scheme for regularisation of the default in fulfilment of the export obligation. After recording these findings, the High Court gave three-fold directions in the following terms : "1. It follows from the above that the Customs au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re to fulfill the condition of an exemption notification the customs authorities are directed to consider the same and pass appropriate orders in accordance with law. It is open to the Customs authorities as well as the licensing authority to take action pursuant to the decision taken by them on the representations filed by the petitioners seeking a regularisation of the default committed by them. Till a decision is taken in the representation filed by the petitioners, the prosecution is stayed. The Director of Revenue Intelligence is also directed not to take any steps without specific authorization from Customs/Licensing Authority." [Numbering by us] 8. Admittedly, the Union of India in pursuance to direction No. 2, reproduced abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of the interim directions issued by the High Court on 31-10-1996. According to us, the interim order passed by the High Court came to an end with the passing of final order. In any case, it may be clarified that the interim order passed by the High Court did not mean that investigation had been stayed. The investigation may go on but till a decision is taken on the representation given by the respondents, no coercive steps against the respondents be taken under the Foreign Trade (Development & Regulation) Act, 1992 and the Customs Act, 1962 meaning thereby that neither steps for coercive recovery of customs duty nor arrest of the respondents be made.
11.To be listed in the first week of December, 2006. X X X X Extracts X X X X X X X X Extracts X X X X
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