Legal principle

In matters of interpretation of the Foreign Trade Policy and import licences, the DGFT is the final authority and Customs cannot take a view contrary to that of the DGFT; a concession permitting re-export in line with a DGFT clarification involves no error apparent on the face of the record justifying review.

Court decision

The review petition was dismissed; the Court held that in acceding to the petitioner's request to re-export the Gold Dore Bars on 4 September 2019 the learned Standing Counsel committed no error apparent on the record, and no case for review was made out — the petitioner's position, permitting re-export, stands.

Facts

Kundan Care Products Ltd, an importer of Gold Dore Bars, earlier held a private warehouse licence under Section 58 and a Special Warehouse Licence under Section 58A of the Customs Act, 1962, both of which it surrendered. Eleven consignments of Gold Dore Bars landed at the Delhi customs port just before the customs duty on gold was increased with effect from 6 July 2019, making clearance for home consumption uneconomical. Its fresh application for a Special Warehouse Licence under Section 58A was rejected by the Commissioner of Customs (Export) on 13 August 2019, inter alia on the ground that small lockers/vaults did not qualify as 'sites' or 'buildings'. In the ensuing writ petition, on 4 September 2019, counsel for the Revenue conceded that the petitioner could re-export the Gold Dore Bars on furnishing shipping bills and in accordance with law, and the writ was disposed of. The Union of India then filed this review petition contending that the concession was a mistake because the import was under a DGFT licence containing an actual user condition, which, it argued, barred re-export.

Key provisions

• Section 113(d), Customs Act, 1962 — Confiscation of goods attempted to be improperly exported
• Section 58, Customs Act, 1962 — Licensing of private warehouses
• Section 114, Customs Act, 1962 — Penalty for attempt to export goods improperly etc
• Regulation 3, Bill of Entry (Forms) Regulations, 1976 — Form of Bill of Entry
• Section 20(2), Customs Act, 1962 — Re-importation of goods
• Section 25(1), Customs Act, 1962 — Power to grant exemption from duty
• Section 3, Customs Act, 1962 — Classes of officers of customs
• Section 3(12), Customs Tariff Act, 1975 — Levy of additional duty equal to excise duty, sales tax, local taxes and other charges