We find from the scheme of the Customs Act, 1962 and the Foreign Trade (Development and Regulation) Act, 1992 that whenever a dispute may arise as to the classification of the goods, other than its description, quantity and FOB value, the customs authorities have to refer the dispute for adjudication to DGFT under Section 13 of the Act. It is only if the DGFT as the licensing and also adjudicating authority decides against the licensee, that the customs authorities will get jurisdiction to confiscate and levy penalty on such goods. (Para 21)
The writ petition is allowed. The order of the Commissioner of Customs and Central Excise, Kanpur dated 30.3.2009 is set aside. The Commissioner, Customs and Central Excise is directed to refer the matter with all the material including the report obtained form CRCL to the Director General of Foreign Trade, New Delhi. If the Director General of Foreign Trade finds that goods are not of the classification for which the license was granted for DEBP, he may proceed to take steps in accordance with the Foreign Trade (Development and Regulation) Act, 1992 and it is only thereafter that the customs authorities may invoke the provisions of the Customs Act, 1962. (Para 22)
IN THE HIGH COURT OF ALLAHABAD
Civil Misc. Writ Petition No. 1343 of 2009
PTC Industries Ltd.
Versus
Union of India & Ors.
CORAM: Hon. Sunil Ambwani, J. and Hon. Virendra Singh, J.
