The main legal point established in the judgment is that imported material subject to actual user conditions must be used in accordance with the conditions of the licence and the relevant notifications, and the customs authorities have the jurisdiction to seize the goods if there is a prima facie case of contravention of the conditions.

( 1 ) IN this petition under Article 226 of the constitution, the petitioner has sought for the folowing reliefs: a) Issue Writ of Mandumas or any other order or direction or appropriate writ directing respondent No. 1 to release in favour of the petitioner-firm 51 bales of 100% Mulberry Raw Silk seized on 21-9-87 and thereafter from the premises of the petitioner and from the premises of M/s. Shivananda silk Koti, Vasavi Silks, B. T. V. Silks, kamal Silks and from M/s. G. Shan- thilal Transport Company holding the same as being without jurisdiction and illegal. b) Issue writ of prohibition or any other appropriate writ or order or direction as the goods may be prohibiting respondent No. 1 from conducting/holding any proceedings/enquiry with respect of 51 bales of 100% Mulberry Raw Silk imported by the petitioner in pursuance to import licence validly and legally. c) Grant such relief or reliefs as this hon'ble Court may deem fit and proper in the circumstances of the case.

( 2 ) THE petkioner is a registered partnership firm having its Head Office at Phagwara and a Branch Office at Bangalore. It is the case of the petitioner that it is an exporter of pure silk textile goods manufactured out of 100% mulberry raw silk imported under the import licence.

( 3 ) IT is contended on behalf of the petitioner that it has imported 60 bales of 100% mulberry raw-silk pursuant to the Advance Import licence granted to it under the provisions of the Import and Export Control act, 1947 read with Import and Export policy for the period from April 1987 to march 1988; that after taking delivery of 60 bales of mulberry raw silk at Bombay Port, the same were transported to Bangalore through M/s. G. Shantilal Transport Co. , for the purpose of twisting and for carrying out manufacturing process and thereafter to return the manufactured goods to Phagwara for embroidary work and thereafter to export the same out of India; that the petitioner has complied with the conditions of the licence; therefore, the Customs Authorities have no jurisdiction either to seize or to take any action in the matter. In support of these contentions, the petitioner has produced the advance Licence, issued under Duty Exemption Scheme dated 7-5-1987 as Annexure-A, the duty-exemption entitlement certificate dated 7-5-1987 as Annexure-B, Export Certificate Invoice dated 28-6-1987 as Annexure- d; and Bill of Entry for Home Consumption dated 24-8-1987 as Annexure-E. It has also produced a copy of the statement dated 29-9-87 of Sri Anil Kumar, an active partner of the petitioner-firm as Annexure-G.

( 4 ) WHEREAS it is contended on behalf of the respondents that no doubt the petitioner was granted Advance Import Licence to import 60 bales of 100% Mulberry raw-silk weighing 6850 Kgs. with duty exemption on 6844. 5 Kgs. only; but the licence was subject to actual user condition and as such the petitioner was not entitled to transport the same from Bombay to Bangalore; that the transport of the bales in question from Bombay to Bangalore was in violation of the exmption notification issued under the customs Act, 1962; that the authorities exercising the power under the Customs Act are entitled to exercise the power irrespective of the fact that the petitioner has exported the manufactured material in compliance with the condition of the import licence. In support of their case, the respondents, along with the statement of objections, have produced the mahazars effecting the seizure of 51 bales of 100% mulberry raw-silk in question and the notification dated 5-4-1982 issued under Section 25 of the Customs Act in supersession of the earlier Notification dated 1-9-1977 and also the duty exemptions scheme - Appendix-19 (Chapter 16 ). The contents of the import licence granted to the petitioner and the duty exemption entitlement certificate and also the notifications issued under sub-section (1) of Section 4 of the Customs Act, 1962 by the Central government appointing and empow