IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION CUSTOMS CUSTOMS CUSTOMS APPEAL NO.72 OF 2007 APPEAL NO.72 OF 2007 APPEAL NO.72 OF 2007 Marico Marico Marico Limited Limited Limited ..Appellant ..Appellant ..Appellant vs vs vs The The The Commissioner of Customs (EP) ..Respondents Commissioner of Customs (EP) ..Respondents Commissioner of Customs (EP) ..Respondents Mr.Vikram Mr.Vikram Mr.Vikram Nankani with Mr.Madhav Baya and Nankani with Mr.Madhav Baya and Nankani with Mr.Madhav Baya and Mr.P.K.Shetty Mr.P.K.Shetty Mr.P.K.Shetty and Mr.Vipin Jain for Appellant and Mr.Vipin Jain for Appellant and Mr.Vipin Jain for Appellant Ms.S.V.Bharucha Ms.S.V.Bharucha Ms.S.V.Bharucha with Mr.S.D.Bhosale and with Mr.S.D.Bhosale and with Mr.S.D.Bhosale and Mr.H.P.Chaturvedi Mr.H.P.Chaturvedi Mr.H.P.Chaturvedi for Respondents for Respondents for Respondents WITH WITH WITH CUSTOMS APPEAL NO. 75 OF 2007 CUSTOMS APPEAL NO. 75 OF 2007 CUSTOMS APPEAL NO. 75 OF 2007 The The The Commissioner of Customs (Exp) .. Appellant Commissioner of Customs (Exp) .. Appellant Commissioner of Customs (Exp) .. Appellant vs vs vs M/s M/s M/s Marica Industries Limited .. Respondent Marica Industries Limited .. Respondent Marica Industries Limited .. Respondent Ms.S.V.Bharucha Ms.S.V.Bharucha Ms.S.V.Bharucha with Mr.S.D.Bhosale and with Mr.S.D.Bhosale and with Mr.S.D.Bhosale and Mr.H.P.Chaturvedi Mr.H.P.Chaturvedi Mr.H.P.Chaturvedi for Appellant for Appellant for Appellant Mr.Vikran Mr.Vikran Mr.Vikran Nankani with Mr.Madhav Baya and Nankani with Mr.Madhav Baya and Nankani with Mr.Madhav Baya and Mr.P.K.Shetty Mr.P.K.Shetty Mr.P.K.Shetty and Mr.Vipin Jain for Respondents and Mr.Vipin Jain for Respondents and Mr.Vipin Jain for Respondents CORAM CORAM CORAM : F.I.REBELLO AND : F.I.REBELLO AND : F.I.REBELLO AND R.S.MOHITE, R.S.MOHITE, R.S.MOHITE, JJ JJ JJ DATED DATED DATED : : : 10th January, 2008 10th January, 2008 10th January, 2008 P.C. P.C. P.C. 1.1.1. Appeal No.72 of 2007 is by the Importer against Appeal No.72 of 2007 is by the Importer against Appeal No.72 of 2007 is by the Importer against the the the fine and penalty imposed by the order of the fine and penalty imposed by the order of the fine and penalty imposed by the order of the tribunal. tribunal. tribunal. 2.2.2. Appeal by the revenue is in respect of the Appeal by the revenue is in respect of the Appeal by the revenue is in respect of the finding finding finding by the tribunal. There was only a by the tribunal. There was only a by the tribunal. There was only a technical technical technical breach. breach. breach. 3.3.3. The relevant portion of para 4.4.6 of the The relevant portion of para 4.4.6 of the The relevant portion of para 4.4.6 of the Handbook Handbook Handbook reads as under : reads as under : reads as under : " Items reserved for imports by STate Items reserved for imports by STate Items reserved for imports by STate Trading Trading Trading Enterprises cannot be imported Enterprises cannot be imported Enterprises cannot be imported against against against advance licence. However, those advance licence. However, those advance licence. However, those items items items can be procured from State Trading can be procured from State Trading can be procured from State Trading Enterprises Enterprises Enterprises against ARO issued to advance against ARO issued to advance against ARO issued to advance licence licence licence holder. " holder. " holder. " Other Other Other relevant paras which was introduced on relevant paras which was introduced on relevant paras which was introduced on 30th 30th 30th June, 2005 reads as under : June, 2005 reads as under : June, 2005 reads as under : " The State Trading Enterpises are also The State Trading Enterpises are also The State Trading Enterpises are also allowed allowed allowed to sell the goods on high sea sale to sell the goods on high sea sale to sell the goods on high sea sale basis basis basis to to to the Advance Licence holders. " the Advance Licence holders. " the Advance Licence holders. " 4.4.4. Considering the facts of the case, the learned Considering the facts of the case, the learned Considering the facts of the case, the learned tribunal tribunal tribunal was pleased to record a finding that the was pleased to record a finding that the was pleased to record a finding that the initial initial initial import should have been by the State import should have been by the State import should have been by the State Trading Trading Trading Corporation. Corporation. Corporation. The tribunal noted that there The tribunal noted that there The tribunal noted that there was was was some procedural lacunae. In that context of some procedural lacunae. In that context of some procedural lacunae. In that context of the the the matter, they reduced the redemption fine to matter, they reduced the redemption fine to matter, they reduced the redemption fine to Rs.10,000/- Rs.10,000/- Rs.10,000/- and penalty to Rs.10,000/-. In our and penalty to Rs.10,000/-. In our and penalty to Rs.10,000/-. In our opinion, opinion, opinion, this is an exercise of discretion by this is an exercise of discretion by this is an exercise of discretion by tribunal. tribunal. tribunal. Based on the facts before it questions Based on the facts before it questions Based on the facts before it questions of of of law as framed could not arise from the order of law as framed could not arise from the order of law as framed could not arise from the order of the the the tribunal. Consequently, appeal stands tribunal. Consequently, appeal stands tribunal. Consequently, appeal stands dismissed. dismissed. dismissed. (F.I.Rebello, (F.I.Rebello, (F.I.Rebello, J) J) J) (R.S.Mohite, (R.S.Mohite, (R.S.Mohite, J) J) J)