UNITED BREWERIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners are a company registered under the Companies Act and carrying on business of trading and exports and imports of various goods through a division known as United Breweries International. The petitioners were issued an additional licence dated October 11, 1984 under the provisions of the Import Policy April 1984-March 1985. In accordance with the Import Policy, the petitioners were entitled to import certain items under the additional licence. The petitioners entered into two contracts with Osram Bmbh, West Germany for the purchase and import of Sodium Vapour lamps for an aggregate value of Rs. 1,73,491/- and Rs. 46,898.20 respectively. After the consignments under the two contracts reached Bombay, the petitioners filed two bills of entries on September 2, 1985 and September 3, 1985 for clearance of the consignments and offered the additional licence dated October 11,1984. The petitioners also addressed two letters dated October 24, 1985 to the Customs Authorities setting out the reasons as to why Sodium Vapour Lamps were eligible for clearance under the additional licence.

(2.) On October 30, 1985, the Customs Authorities served two show-cause notices upon the petitioners inter alia claiming that the Sodium Vapour Lamps cannot be described as 'spares' and called upon the petitioners to show cause as to why the two consignments should not be confiscated under Section 111(d) of the Customs Act and penalty should not be imposed. On November 30, 1985 the petitioners filed replies to the show-cause notices and claimed that Sodium Vapour Lamps were imported as spares within the meaning of item No. 85.20 of Schedule I to the Import (Control) Order. Before the Customs Authorities could pass an order of adjudication on December 9, 1985, the petitioners approached this Court by filing Writ Petition No. 2449 of 1985 under Article 226 of the Constitution challenging the validity of show-cause notices. The petition was summarily dismissed by learned Single Judge but in Appeal No. 1113 of 1985 preferred by the petitioners, the petitioners were permitted to clear the consignments on furnishing bank guarantee of 100% of c.i.f. value. The Customs Authorities were permitted to proceed with the hearing of the show-cause notices and pass an order of adjudication.

(3.) In accordance with the direction of this Court, the petitioners were heard by the respondents and by two orders dated February 4, 1986 and February 13, 1986 the claim of the petitioners that consignments may be cleared under the additional licence was turned down. The Customs Authority could not confiscate the goods in view of the clearance permitted by this Court and thereupon in lieu of confiscation, fine in the sums of Rs. 1,70,000/- and Rs. 45,000/- was directed to be paid by the petitioners. The petitioners have preferred the present writ petition to challenge the correctness of the order.