1991 (5) TMI 70 - HC - Customs

Summary

Issues:
1. Challenge to refusal of Customs Authorities to process Bill of Entry and release goods.
2. Allegation of under-valuation of imported goods.
3. Delay in adjudication proceedings by Customs Authorities.

Analysis:

1. The petitioner, engaged in the business of automobile parts, imported goods from Singapore. The dispute arose when the invoice mentioned a different pricing term (CIF) than agreed upon (FOB). The petitioner challenged the refusal of Customs Authorities to process the Bill of Entry and release the goods through a writ petition under Article 226 of the Constitution. An interim order allowed shifting the goods to a bonded warehouse, with Customs to proceed with adjudication only after court's leave.

2. The petitioner contended that the Customs Authorities should release the goods at the same or lower prices as previously cleared identical goods. Citing precedents like Ghanshyam Chejra v. Collector of Customs and Kajaria Exports Ltd. v. Collector of Customs, the petitioner argued against under-valuation. The Customs Authorities alleged gross under-valuation based on preliminary investigation, claiming a significant discrepancy in prices. However, the court found the evidence insufficient to support the under-valuation claim.

3. The court emphasized the need for Customs Authorities to provide relevant subsequent evidence justifying a different valuation stance. Quotations presented by the respondents lacked invoice backing and were subject to adjustment, rendering them inconclusive. The court ruled that a quotation alone cannot establish pricing, as it is negotiable and dependent on various factors. Due to the absence of substantial post-clearance evidence, the court found no justification for rejecting the petitioner's declared value. Noting the unreasonable delay in adjudication proceedings, the court ordered the release of goods upon furnishing a bond, with strict timelines for adjudication and discharge of the bond.

In conclusion, the court disposed of the writ petition, directing the release of goods subject to bond conditions and expeditious adjudication. The judgment highlighted the importance of substantiated evidence in valuation disputes and criticized delays in administrative processes.