TMI Blog1971 (1) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of which fine was not remitted in full. The Government should have given to the appellants adequate opportunity to prove that there had been no substantial deviation from the terms of the licence or for other reasons on which they claimed that the fine may be remitted in full. set aside the order passed by the Central Government in respect of the six orders passed by the Collector, where fine has not been remitted in its entirety and direct that the Central Government do consider the revision applications on their merit. - 2445-2450 of 1966 - - - Dated:- 6-1-1971 - J.C. Shah, C.J.I., K.S. Hegde and A.N. Grover, JJ. [Judgment per : J.C. Shah, C.J.I.]. - These six appeals arise out of orders passed by the Central Government in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... izes of the Steel Sheets appeared to be odd and not regular; and (d) that the value of the invoices was not according to the prevailing prices for steel sheets in prime quality. To avoid liability for heavy demurrage the appellant-Company applied for and obtained an order for clearance of the goods lying in dock. A show cause notice was issued by the Collector of Customs requiring the appellant to show cause why the sheet imported be not forfeited. The appellant-Company represented that it was engaged in the manufacture of drums and containers of various sizes and that although the sizes of Steel sheets appeared to be odd, these were suitable for its manufacturing purposes. The Company also pleaded that the sizes of sheets imported were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y those sheets could be imported against the licences which fulfilled two conditions : (1) the sheets were suitable for manufacturing drums and (2) they were of "prime quality" material. The Board did not agree with the argument advanced on behalf of the appellant-Company that the sheets were of drum quality and were permitted to be imported against the two import licences. The Board observed that the sheets imported varied in sizes and gauges in some packages; that while "certain sheets were of uniform size (i.e. length and width at both ends) the other sheets were of irregular shapes"; that gauges of sheets in some of the consignments varied between 11 and 13 and in others they varied between 18 and 24; that defects such as clipped edges, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to thickness of the sheets. There was again no evidence that any part of the consignment was not fit for use in the manufacture of drums and barrels. By importing sheets of 11, 12 and 13 gauge or of gauges varying between 18 and 24 no breach of the conditions of the second licence was committed. The condition that the sheets imported must be of "prime quality" was imposed for the first time by the Iron and Steel Controller's Public Notice No. I/I-S/62, dated December 6, 1962 and could not obviously apply to the sheets imported under the two licences which were issued earlier. But the Collector as well as the Central Board of Excise and Customs decided the cases principally on the ground that the goods were not of "prime quality". The Colle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, dated October 5, 1963, the fine be reduced by half; and that the fines reduced by the Board in the cases covered by the Collector's Orders Nos. S/10-22-64-LC and S/10-71/64-LC both, dated March 2, 1964, be further reduced as decided by them. 7.These six appeals relate to the orders made by the Government of India in respect of those consignments covered by the order in which the fines were not remitted in full. The order of the Collector of Customs proceeded principally upon the ground that the sheets imported were not of "prime quality". Whether the sheets imported were not according to the conditions of the licence because they did not comply with the condition as to the size and gauge subject to the permissible tolerance was apparen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Company. The basis of the judgment of the Collector in these cases also, was that the goods were not of "prime quality". 9.The Central Board of Excise and Customs also did not deal with the different consignments separately and did not apparently consider whether on the ground that some sheets were not of the permitted gauge under the first licence the import may be regarded as unauthorised. 10.We are of the view that there was no proper investigation of the dispute by the Collector of Customs and the Central Board of Excise and Customs. We are also of the view that in view of the infirmities disclosed in the orders made by the departmental authorities the Central Government in revision should have proceeded to consider the mer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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