Judgment:
Jyoti Balasundaram
We have heard both sides on the appeals against the order of the Commissioner (Appeals) upholding the adjudication order dated. 18.7.97 in the case of M/s. Precut Mills Ltd. and order dated. 25.7.97 in the case of Super Spinning Mills, holding that the benefit of Notification No. 160/92- Cus. dated. 20.4.92 as amended is not admissible to the importers for the reason that on the date of import, they were not in possession of a valid licence.
2. The contention of the appellants is that the EPCG Committee had decided on 27.1.95 and 13.2.95 in the case of Precut Mills that licence was to be issued to the mills and in the case of Super Spinning Mills, the Committee decided on 13.2.95 that licence was to be issued to them and therefore the issuance of licence dated. 17.5.95 and 26.5.95 to M/s. Precot Mills and licence dated. 17.5.95 to M/s.Super Spinning Mills should relate back to the dates of the decision of the EPCG Committee. It is the contention that the delay on the part of the DGFT in issuing the licences even after the decision taken by the EPCG Committee cannot be laid at their door and the doctrine of dating back and relating back is to be held to apply so as to hold that both the appellants were in possession of a valid licence at the time of import in March 95 so as to hold them to be eligible to the benefit of confessional rate of duty under the relevant notification. However, we find that these submissions are not tenable for the reason that the clear language of the notification enjoins upon the appellants the requirement of possession of valid licence issued on or after 1.5.95 by the licensing authority which has been defined in the notification itself as the DGFT, on the date of import. The licences to the appellants having been issued only subsequent to the import, it is obvious that neither of them are entitled to the benefit of confessional rate of duty for the goods imported by them in March 95. Therefore, we uphold the impugned order of the Commissioner (Appeals) and reject the appeals.