Judgement

SABYASACHI MUKHARJI, J.:- This is an application for special leave to appeal against the order of the Division Bench of the Bombay High Court dated 22nd/23rd July, 1986 filed on behalf of the Union of India.

2. M/s. Godrej Soaps (P) Limited, and a shareholder and Director of the said company, Mr. A. B. Godrej who were petitioners went before the Bombay High Court in Writ Petition No. 1665 of 1986. The said petitioners who are respondents herein (hereinafter described as respondents) purchased 544.860 Metric Tonnes of Palm Kernel Fatty Acid on high sea basis imported under an additional licence. They challenged the action of the Customs authorities refusing to permit the clearance of the said Palm Kernel Fatty Acid in view of the decision of this Court in Raj Prakash Chemicals case (1986) 2 SCC 297: (AIR 1986 SC 1021) and Indo Afghan Chamber of Commerces case AIR 1986 SC 1567.

3. It may be mentioned that one Messrs. Dimexon a firm carrying on business of importing rough diamonds and exporting cut and polished diamonds were issued Export House Certificate under the import policy for the period 1978-79 and certain additional licences in or about the month of July, 1986 covered