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Issues:
1. Whether customs duty on Polyester Filament Yarn imported wounded on bobbins should be levied on the entire invoice price or divided between yarn and bobbins separately. Analysis: The petitions raised the issue of whether customs duty on Polyester Filament Yarn imported wounded on bobbins should be levied on the entire invoice price or divided between yarn and bobbins separately. The petitioners argued that bobbins are durable and can be refused or returned, thus should be taxed separately under respective tariff items. They contended that part of the invoice price attributed to bobbins should be separated for duty calculation to avoid double taxation of packing material. However, the revenue argued that yarn is sold and delivered wounded on bobbins as one transaction, making it impractical to separate the value of bobbins for duty assessment. The court analyzed Section 14 of the Customs Act, which provides for valuing imported goods based on the price at which goods are ordinarily sold or offered for sale at the place of importation. The court noted that yarn cannot be transacted separately from bobbins and is imported in the form of wound bobbins. Invoices presented by the petitioners showed one price for the entire consignment, without separate valuation for yarn and bobbins. The court emphasized that the value of the goods in packed form must be considered for assessing the imported goods' value for duty purposes. Referring to a Supreme Court judgment in a similar case involving P.V.C. import, the court concluded that the value of Polyester Filament Yarn must be assessed at the rate applicable to yarn at the entire invoice price. The court dismissed the petitions, stating that the petitioners are not entitled to set off the value of the packages from the invoice price of yarn for customs duty levy. The court clarified that the judgment does not address whether customs duty is payable on bobbins' value or if any exemption benefits apply, as these were not the subject matter of the petitions. Consequently, the petitions were dismissed with no order as to costs, and interim relief granted earlier was vacated.
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