Wearon Exports Pvt. Ltd. vs Union Of India (Uoi)
2003 Latest Caselaw 1178 Bom

ORDER

1. The Petitioners have challenged the queries memo dated 6-2-1996 by which the Petitioners have been called upon to produce sealed samples of export garment which might have been retained at the time of export made by the original licence holder.

2. Petitioners are admittedly transferee of the advance licence which has been validly transferred by the Licensing Authority in favour of the Petitioner Co. Once a licence has been validly transferred by the licensing authorities in favour of the Petitioners, it will not be open for the Customs Authorities to investigate into the genuineness of the licence granted or the exports made by the original licence holder.

3. In the affidavit-in-reply, it is stated that the licences have been obtained by making totally false statements and by producing forged and/or fabricated documents and, therefore, it is necessary to verify the genuineness of the grant of licence.

4. The Petitioners as transferee of the advance licence have imported the goods. For clearance of the said imported goods, the above licence has been produced by the Petitioners as transferee of the licence. So long as the licence is valid and no action has been initiated by the licensing authorities, either to suspend the licence or cancel the licence, the Customs authorities will be bound by the licence. Therefore, the Respondents are not justified in issuing a query memo to investigate into the genuineness of the licence acquired by the Petitioners.

5. In this view of the matter, the query memo dated 6th February, 1996 (Exhibit-B to the petition) is quashed and set aside. Rule is made absolute in terms of the prayer Clause (a). However, it is made clear that if the Respondents want to initiate any action on any other ground, they may do so in accordance with law.

Petition is disposed of with no order as to costs.