Kuldip Singh, J. - (1.) The respondent, Shashikant and Company, had applied for the grant of Export House Certificate under the Import Policy 1978-79. The Certificate was denied on the ground that the respondent had not diversified its exports. Against the said order the writ petition filed by the respondent was allowed by the Bombay High Court and the respondent was held entitled to the Export House Certificate. Special leave petition filed by the Union of India against the said order was heard along with a bunch of similar petitions under the title Union of India v. Rajnikant Brothers. The petitions were dismissed on April 18, 1985 by an order in the following terms (1986 Supp SCC 692):"We have heard counsel for the parties and have gone through the judgments of the High Courts of Bombay and Delhi. We are unable to find, in the facts and circumstances of the case, any requirement of diversification of exports as a condition for the grant of Export House Certificates in the Import Policy for the year 1978-79. While confirming the High Court's Judgment quashing the order impugned in the Writ Petitions in the High Court we direct the appellants to issue the necessary Export House Certificates for the year 1978-79. The Export House Certificates shall be granted within 3 months from this date. Save and except items which are specifically banned under the prevalent import policy at the time of import, the respondents shall be entitled to import all other items whether canalised or otherwise in accordance with the relevant rules. The appeals are disposed of accordingly with no order as to costs."
(2.) Pursuant to the above quoted directions of this Court the respondent was granted an additional licence dated September 4, 1985 for the import of Palm acid oil which was a canalised item under the Import Policy 1985-88. The respondent entered into a contract dated May 5, 1986 with a Singapore firm for supply of 4000 M. T. of Palm acid oil. The invoice in respect of the said contract was dated September 1, 1986 and the respondent filed the Bill of Entry on Septeber 11, 1986.
(3.) The Collector, Customs, Calcutta by his order dated October 31, 1986, confiscated the goods on the ground that the import of Palm Acid Oil - a canalised item - was unauthorised. The respondent was, however, given the option to get the goods released on payment of a fine of Rs. 58,00,000/ - in lieu of confiscation.;