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Issues Involved:
1. Amendment of Bill of Entry 2. Rate of Customs Duty Applicable 3. Authority and Jurisdiction of Customs Officers 4. Validity of Show Cause Notice 5. Principles of Natural Justice 6. Validity of Assistant Collector's Order 7. Appellate and Revisional Orders Detailed Analysis: 1. Amendment of Bill of Entry: The core issue revolves around the amendment of the bill of entry initially filed by the Company and later amended to include the petitioners as importers. The Assistant Collector allowed the amendment on 7th September 1965, which changed the name of the importer from the Company to the petitioners. The petitioners argued that this amendment was legally permitted under Section 149 of the Customs Act, 1962, which allows amendments on the basis of documentary evidence existing at the time the goods were cleared. The Joint Secretary to the Government of India, however, deemed the amendment improper, asserting that it was beyond the scope of what is connoted by the word "amendment." 2. Rate of Customs Duty Applicable: The dispute over the applicable rate of customs duty hinges on the date of importation. The original bill of entry was filed on 13th July 1965, when the duty rate was 32%. However, the duty rate increased to 45% on 20th August 1965. The petitioners contended that the rate applicable should be the one in force on 13th July 1965, as per Section 15(1)(a) of the Customs Act. The Appellate Collector and the Joint Secretary held that the petitioners became liable for the higher rate of 45% because the amendment made the bill of entry effectively a new document, thus shifting the relevant date to 7th September 1965. 3. Authority and Jurisdiction of Customs Officers: The petitioners challenged the authority of the Assistant Collector who issued the show cause notice and the subsequent actions taken by customs officials. They argued that once the amendment was allowed by the initial Assistant Collector, it could not be reconsidered or corrected by another officer of the same rank. The court agreed, emphasizing that the proper procedure for correcting any perceived error was through an appeal or revision under Section 130 of the Customs Act. 4. Validity of Show Cause Notice: The petitioners argued that the show cause notice issued on 29th January 1966 was beyond the time prescribed by Section 28 of the Customs Act. The court found no substance in this plea, determining that the notice was issued within the permitted six-month period, starting from 7th September 1965. 5. Principles of Natural Justice: The petitioners contended that the Assistant Collector's order violated principles of natural justice as it was not a speaking order and failed to provide reasons for the decision. The court acknowledged this grievance but noted that the petitioners had been given personal hearings and opportunities to file detailed memoranda in subsequent appeals and revisions. Thus, the initial lack of a reasoned order was mitigated by the detailed appellate and revisional orders. 6. Validity of Assistant Collector's Order: The court found the Assistant Collector's order dated 16th March 1966 to be unsatisfactory and lacking proper reasoning. It criticized the Assistant Collector for failing to understand or apply the petitioners' contentions, thereby creating further work for appellate forums and hindering the petitioners' right to appeal effectively. 7. Appellate and Revisional Orders: The court scrutinized the appellate and revisional orders, finding inconsistencies in the reasoning provided by the Appellate Collector and the Joint Secretary. The court emphasized that the amended bill of entry, as allowed by the Assistant Collector, stood valid and could not be disregarded without proper correction through higher authority. The court concluded that the demand for additional duty was based on a flawed understanding of the law and statutory provisions. Conclusion: The court quashed the impugned orders dated 16th March 1966, 26th April 1967, and 23rd August 1972, directing the respondents to refund the amount of Rs. 1,60,842.39 to the petitioners. The court also awarded costs of Rs. 500/- to the petitioners, to be carried out by 31st January 1979.
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