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Issues Involved:
1. Modification of the court's order dated 26th August 1992. 2. Release of the consignment of imported diesel engines. 3. Determination of the value for debiting the import licence. 4. Allegations of forgery and mis-declaration related to the import licence. 5. Applicability of Section 14(1) of the Customs Act, 1962. 6. The impact of pending appeals on the finality of adjudication orders. Detailed Analysis: Issue 1: Modification of the Court's Order Dated 26th August 1992 The appellants sought modification of the order dated 26th August 1992, requesting the release of the entire consignment of used diesel engines based on payment of admitted duty and securing the difference in duty through a bank guarantee and P.D. Bond. The court modified the order, allowing the appellants to take delivery of 200 sets of diesel engines upon payment of the admitted duty on c.i.f. value and 50% of the difference in duty in cash, with the balance secured by a bank guarantee. Issue 2: Release of the Consignment of Imported Diesel Engines The court initially directed the release of 200 sets of diesel engines upon payment of assessed duty and furnishing of ITC Bonds for the assessed duty. The court later modified this, allowing release upon payment of admitted duty on c.i.f. value and securing the difference in duty through partial cash payment and a bank guarantee. Issue 3: Determination of the Value for Debiting the Import Licence The core issue was whether the import licence should be debited based on the enhanced value determined by the customs authorities or the c.i.f. (Cost, Insurance, and Freight) value. The court held that the licence should be debited based on the declared c.i.f. value unless it is proven that the importer paid more than the declared amount. The court relied on precedents, including Sneha Traders v. Collector of Customs, which emphasized debiting the licence based on the actual price paid to the foreign supplier. Issue 4: Allegations of Forgery and Mis-Declaration Related to the Import Licence The respondents contended that the import licence was forged and that the goods were mis-declared. However, the court noted that the licensing authority did not respond to the appellants' queries about the genuineness of the licence, implying its validity. The court also observed that the customs authorities treated the licence as valid for some purposes, such as debiting and releasing goods, while labeling it forged for others, which was inconsistent. Issue 5: Applicability of Section 14(1) of the Customs Act, 1962 Section 14(1) of the Customs Act, 1962, was crucial in determining the assessable value of the goods for customs duty. The court clarified that the assessable value under Section 14(1) is the price at which goods are ordinarily sold in international trade, not the actual price paid. However, this assessable value is distinct from the c.i.f. value used for debiting the import licence. Issue 6: The Impact of Pending Appeals on the Finality of Adjudication Orders The court emphasized that once an appeal is filed, the adjudication order loses its finality and becomes sub judice. Therefore, the enhanced assessable value determined in the adjudication order cannot be used to debit the licence until the appeal is resolved. Conclusion: The court directed the customs authorities to debit the licence based on the declared c.i.f. value and return it to the appellants. The court rejected the contentions of the customs authorities regarding the enhanced assessable value and forgery allegations, emphasizing the need for consistency and the distinction between assessable value for duty and c.i.f. value for debiting the licence. The pending appeal before the Tribunal further supported the court's decision to base the debiting on the c.i.f. value.
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