9911796707
TMI Blog1971 (1) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing programme the appellant obtained in June, 1962 two licences for importing steel sheets. Under the first licence the appellant was authorised to import "Mild Steel Item - 18G Black Plain Sheets Drum Quality for manufacturing drums and containers," subject to the terms and conditions detailed in the annexures thereto. The total C.I.F. value of the licence was Rs. 40,00,000/-. The second licence was for "Steel Drum Sheets for Lubricating Oil Packing" of the total C.I.F. value of Rs. 50,30,000/-. 3.The appellant placed orders for import of steel sheets with a firm of manufacturers in the United States of America. The goods under the two licences reached the Bombay Port in twelve separate consignments. On arrival of the consignments, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the appellants. In his view the licence issued in the case was for "Prime Quality" sheets and the term "Prime Quality" meant that the sheets were of standard sizes and lengths, with uniform dimensions and without surface defects, but in the sheets imported there was "a percentage of defective sheets with clipped edges, surface grooves, sheering imperfections etc. and the bulk of the sheets were of varying sizes and dimensions". On that account the sheets were not of "prime quality', that the explanation of the Company was not satisfactory, and since the importer had no valid licence for importing the sheets actually imported, the importation was in contravention of the Import Control Order No. 17/55 of December 7, 1955 issued under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the appellants that the percentage of sheets of odd sizes and gauges 11, 12 and 13 was negligible and the presence of a small percentage of the consignment was "not representative of the nature" of the entirety of the sheets imported, and observed that even allowing "tolerances generally allowed in measurement of the sheets", all the sheets cannot be considered as of standard sizes, and in any case the fact remained that the sheets imported were not of uniform dimensions in "each skid" and on that account not of "prime quality", and not suitable for manufacturing drums. The Board accordingly upheld the action of the Collector in confiscating the goods but they reduced the fine in some cases. 5.Interrupting the narrative, it is nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of hearing and a single order was passed. The Officer who heard the revision applications on behalf of the Central Government was of the view, and rightly, that the Public Notice No. I/I-S/62, dated December 6, 1962 of the Iron and Steel Controller had no retrospective operation and the condition of "prime quality" could not be applied to the sheets imported under the licences issued before that date. But in his view, one of the two licences e.g. licence, dated June 13, 1962, covering the consignments was issued specifically for 18 gauge sheets, while sheets of different sizes (including 18 gauge) were imported against that licence and on that account consignments covered by that licence "had to be treated as unauthorised". H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him because "the materials were not of standard size, the dimensions were not uniform, the sheets were with surface defects and that a percentage of defective sheets had not only clipped edges, surface grooves, sheering imperfections but that the bulk of the sheets were of varying sizes and dimensions". All the defects in the view of the Collector justified the opinion that the sheets were not of "prime quality". He did not consider whether the goods imported were of 18 gauge size. Since the condition as to "prime quality" was imposed for the first time on December 6, 1962 the orders of the Collector were not sustainable. 8.In respect of the Orders Nos. S/10-22/64-LC and S/10-71/64-LC, dated March 2, 1964, the Collector observed that on ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted in full. 11.On behalf of the company it was urged that since the order of the Collector and the Central Board of Excise and Customs proceeded solely upon the finding that the consignments imported were not of "prime quality" and on no other ground in respect of four consignments we should not remand the cases dealt with under order, dated October 5, 1963 and that we should set aside the order of the Central Government in respect of those four consignments and remit the fine in its entirety, leaving the Central Government free to hold an inquiry only with regard to the remaining two consignments covered by the Collector's Orders Nos. S/10-22/64-LC and S/10-71/64-LC, dated March 2, 1964. For reasons already set out we do not feel just ..... X X X X Extracts X X X X X X X X Extracts X X X X
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