1978 TAX. L. R. 2029 ::90 Mad L W 675 ::(1978) 1 Mad L J 287

Madras High Court

Hon'ble Judge(s): P Govindan Nair , C.J. AND Varadarajan , J

(A) Imports and Exports (Control) Act (18 of 1947) , S.3— Order under - Imports (Control) Order (1955), Cls. 3(3) and 10-C - Scope and interpretation - Import of photographic films by a letter of authority holder under a valid license - Order forfeiting goods under Cl. 3(3) read with S.111 (d) Customs Act before import of goods was completed for violation of condition in license - Cl. 10-C and not Cl. 3 (3) held applicable. Writ Petn. No. 6225 of 1975, D/- 22-9-1976 (Mad), Reversed. The correct approach to understand the scope and effect of Cl. 3 (3) is by reading Cl. 3 (3) with Cl. 10-C and by attempting a harmonious construction of the two clauses so that both the clauses may co-exist and does not infringe the other or create conflict in their applications.(Para 8) When Cl. 10-C is read along with paras 94 (1) and 275 (2), Chapters IV and XIII respectively of the Hand Book of Import Policy, which are not statutory provisions but which enunciate the basic policy of the Government under which, and subject to which alone, import is permitted - (and these policies are made conditions of the licence) there can be little doubt that an inability of the licensee to use the imported articles will attract Cl. 10-C, and action under that Clause cannot result in the confiscation of the goods. ....