UNION OF INDIA vs SAMPAT RAJ DUGAR

The Supreme Court addressed the interpretation of the Imports (Control) Order, 1955, specifically Clause 5(3)(ii), in relation to the ownership of goods imported under an advance import licence. The Court held that the goods remain the property of the seller until the importer fulfills the conditions of the licence, and if the importer fails to clear the goods, the seller retains ownership and can re-export the goods. The Court also clarified that the cancellation of the import licence does not retroactively affect the legality of the import if it was valid at the time of entry, as per Section 2(26) of the Customs Act, 1962.