TaxTMI 
TaxTMI 
2023 (1) TMI 1063
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....for the same. An import license was granted in favour of the Petitioner on 25th September, 2020 which was valid for a period of 18th months i.e., 25th September, 2020 till 24th March, 2022. 4. The import license which was granted was subject to an 'actual user condition' meaning that the Petitioner could import but not trade in the said arms and ammunition. It is the case of the Petitioner that the Petitioner had in November, 2020 imported certain weapons which were cleared and released by the customs authority after inspection. However, thereafter the impugned show cause notice was issued to the Petitioner on 25th February, 2021 calling upon the Petitioner to explain as to how it had sold the arms which were imported subject to 'actual user condition'. The said show cause notice reads as under: "Subject: SCN under the Foreign Trade (Development and Registration) Act, 1992. While an Import Licence No. 0519240593 dated 25.9.2020 was Issued for import of Arms & Ammunition with actual user condition. And whereas it has been replaced that you have sold arms imported against the above said Import License in the market, which is violation of the Actual User condition of the impo....
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....09.2020 for import of 350 weapons issued in favour of m/s premier Gun House, the petitioner AND D. Issue an appropriate Writ, Order, Directions, thereby, declaring that Import License No. 0519740593 dated 25.09.2020 for import of 350 weapons has been granted by DGFT for the purpose of trading viz. sale & purchase of arms/weapons irrespective of the 'Actual User Condition' stipulated in the Import License; AND E. Issue an appropriate Writ, Order, Directions especially in the nature of Mandamus, thereby, directing DGFT, Respondent No. 2 to withdraw the instructions given to the Principal Commissioner of Customs, ACC (Import), Respondent no. 3 for not clearing the consignment of the arms imported by the petitioner against Import License No. 0519240593 dated 25.09.2020; AND F. Issue an appropriate Writ, Order, Directions especially in the nature of Mandamus directing the Principal Commissioner of Customs, ACC (Import), Respondent no. 3 for releasing the consignment of 28 weapons/arms imported by M/s Premier Gun House from SLOVAK REPUBLIC against Import License No. 0519240593 dated 25.09.2020 vide Invoice No. 00002-2021 dated 22.01.2021 under Bill of Entry BE No. 292....
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....erative portion of the said order reads as under: "8. And whereas considering the above facts and as per directions of the Hon'ble High Court of Delhi to decide the matter within 10 days of Hon'ble Court's Order dated 2/6/2021, I am of the opinion that justice will be met in this case, if 28 weapons stated to have already been imported against Invoice no. 00002-2021 dated 22/1/2021 before date of issue of Show Cause Notice and lying on the Port are permitted to be released under import authorisation No. 0519240593 dated 25/9/2020 for the purpose mentioned in the original application. I hereby order accordingly. 9. Further with the clearance of 28 weapons lying at the port Premier Gun House is directed to surrender the import authorisation No. 0519240593 dated 25.9.2020 to this office within 15 days of receipt of this Order." 10. The order came to be passed on 16th June, 2021 by the Deputy Director General of Foreign Trade. Thereafter, vide order dated 16th August, 2021 this Court after perusing the direction issued on 16th June, 2021, for surrender of license, had stayed the said direction. Since then, the writ petition has been pending for adjudication. 11. In the meantime, ....
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....er dated 16th June 2022 and has filed an appeal under Section 15(1)(b) of the Foreign Trade (Development and Regulation) Act, 1992 before the Joint Director General of Foreign Trade which has been dismissed on 11th October, 2021. Para 7 of the said order reads as under:- "7. I therefore in exercise of the power vested in me under Section 15 of the Foreign Trade (Development & Regulation) Act, 1992 read with Notification No. 101(RE-2013) 2009-2014 dated 5th December, 2014, pass the following order. The Appellant is directed to surrender the import authorisation No. 0519240593 dated 25.9.2020 within 30 days of issue of this Order." 14. In the meantime, a meeting of the Policy Relaxation Committee of the DGFT was held on 4th October, 2022 and the Petitioner's case was considered. The minutes of the said meeting are as under: "Subject: Amendment of purpose of imports under imports Authorization No.0519240593 dated 25.09.2020 from Actual user condition to Trading (Stock & Sale). The applicant stated that an import authorization No.0519240593 dated 25.09.2020 was issued to M/s Premier Gun House for import of 350 Nos. of Arms under ITC(HS) Code No. 93030000 on actual user bas....
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....of the Relaxation Committee, it is clear that the import authorisation has been amended from 'actual user condition' to 'trading'. Thus, the Petitioner's sale of the imported arms and ammunition would no longer be violative of the provisions of the Act and the allegation of violation would no longer stand. 16. In both these writ petitions, in the opinion of the Court, the following are the only two outstanding issues: i) The case of the Petitioner is that during the period when the license was valid, the Petitioner was having a license to import 350 guns. However, due to the various issues including the show cause notice and the order to surrender, the Petitioner has been able to import only 221 guns. The Petitioner thus prays for permission to import and avail of the remaining guns which could not be imported, by way of an extension of the license by for a period of one year at least. It is submitted by ld. Counsel for the Petitioner, that in respect of this extension, the Petitioner has made a representation to the DGFT on 25th July, 2022 which is yet to be decided by the DGFT. Mr. Digpaul, ld. Counsel on the other hand submits that the Petitioner, apart from making a represen....