CLAUSE (O) OF SECTION 111 OF CUSTOMS ACT, 1962
IN THE HIGH COURT OF JUDICATURE AT BOMBAY, while deciding on 24.9.09 the Customs Application No.9 of 2001 in re: COMMR. OF CUS. [PREVENTIVE] vs LEELA SCOTTISH LACE PVT. LTD, it was held as follows:-
QUOTE: It would be clear that what the Supreme Court has held that Clause (o) of Section 111 of the Act contemplates confiscation of goods which were exempted from duty subject to a condition which is not observed by the importer within the time prescribed. The occassion for the action under this clause arises only when the condition is not observed within the period prescribed. In the instant case, the respondents had not cleared the goods. The Bill of Entry was filed by some other person. Therefore, the question of breach of condition by the respondents would not arise. What Section 111(o) of the Act reiterates is “the condition is not observed”. The stage for observing the condition had not yet arisen as the goods themselves had not been clered by the respondents. In our opinion, therefore, the learned Tribunal was right in placing reliance on the judgement of the Supreme Court in the case of SAMPAT RAJ DUGAR [UNION OF INDIA vs SAMPAT RAJ DUGAR - 1992-58-ELT-163-SC] UNQUOTE
[for full text of the judgement please visit http://www.taxesinindia.com and click on the citation taxind_2009_hc_bom_cusa_9]
HIGH COURT ORDER
VENKATRAMAN RAGGHUPATHY, Web admin.
