1987 (3) TMI 128 - HC - Customs

Summary

Issues:
Challenge to refusal of Customs Authorities to redetermine assessable value based on corrected freight bill.

Analysis:
In this case, the petitioner challenged the Customs Authorities' refusal to redetermine the assessable value on the Bill of Entry for 76 Coils of defective C.R.C.A. sheets. The petitioner initially declared the freight as Rs. 4,75,350.03p based on the Shipping Corporation of India's bill. However, a corrected freight bill of Rs. 2,60,081.98p was later issued by the Shipping Corporation of India. The petitioner requested the Customs Authorities to re-assess the Bill of Entry based on the correct freight bill, but the request was denied. The Shipping Corporation of India provided reasons for the correction in freight, stating it was done in accordance with standard shipping practices and not as a special concession to the petitioner.

The Court noted that no affidavit was filed by the Customs Authorities. After considering the Shipping Corporation of India's affidavit and correspondence between the parties, the Court accepted the correctness of the corrected freight bill. It was emphasized that the correction was made in line with industry practices, and no special concession was granted to the petitioner. The Court held that Customs Authorities lacked jurisdiction to assess based on incorrect freight and directed them to reassess the Bill of Entry using the amended freight provided by the Shipping Corporation of India.

The Court ordered the Customs Authorities to determine the assessable value based on the corrected freight and redo any assessment done using the incorrect freight. It was further directed that the petitioner, who had already paid duty based on the corrected freight, was not required to make any further payments. The Court also discharged the bond and Bank Guarantee furnished by the petitioner for the release of goods.

The Customs Department did not file an affidavit, and it was acknowledged that the Shipping Corporation of India was responsible for explaining the freight correction. The Customs Department did not admit the allegations contrary to the records. The request for a stay on the order was refused, and no costs were awarded to any party.