1992 (6) TMI 110 - AT - Customs

Summary

Issues Involved:
1. Calculation of market price of seized goods.
2. Acceptance of the market price determined by the Customs Department.
3. Determination of correct market value based on evidence provided by the applicant.
4. Compliance with previous Tribunal orders regarding payment of market value.

Issue-wise Detailed Analysis:

1. Calculation of Market Price of Seized Goods:
The applicant, Sri Samsuddin Sheikh, contested that the market value of the seized goods, calculated at Rs. 4.28 per piece, was arbitrary and lacked a basis. The goods in question were 16,617 pieces of old/used readymade garments (long pants) of foreign origin. At the time of seizure, the department valued the goods at Rs. 1,66,170/-. The applicant provided evidence, including several annexures, indicating that the value of the garments during August/September 1989 was Rs. 15 to 16 per piece. The Tribunal had previously ordered that the market value of the goods as on 11-9-1989 should be paid to the applicant.

2. Acceptance of the Market Price Determined by the Customs Department:
The Collector of Customs, West Bengal, stated that a wide market survey revealed no open market for old and used readymade garments, and no seller kept authentic documents for such items. The N.C.C.F., a Government of India agency, bought similar consignments at Rs. 4.28 per piece in 1985. The department argued that the value of Rs. 71,121/- was correctly determined based on this market survey and requested the Tribunal to order payment at this rate.

3. Determination of Correct Market Value Based on Evidence Provided by the Applicant:
The applicant's counsel, Shri K. Chatterjee, argued that the market value should be based on the rate at which the garments were sold and purchased publicly, not the rate used by cooperative organizations. He contended that the market value should be Rs. 15 per piece, totaling Rs. 2,49,255/-, but the applicant would be satisfied if the seizure value was accepted as the market value. The Tribunal referred to previous decisions, including the case of M/s. Oswal Spinning & Weaving Mills Ltd. v. Collector of Customs, Calcutta, which established that the market value should be the value as on the date of the order setting aside the confiscation.

4. Compliance with Previous Tribunal Orders Regarding Payment of Market Value:
The Tribunal noted that the Customs department had sought permission to sell the garments, which was rejected by the Magistrate of Murshidabad district. Despite this, the department sold the goods while the appeal was pending. The Tribunal emphasized that the applicant should be compensated for the pecuniary loss, placing him in the same position as if the goods were available in their original condition. The Tribunal concluded that the market value should be the value determined by the department at the time of seizure, which was Rs. 1,66,170/-.

Conclusion:
The Tribunal ordered the Collector of Customs (Preventive), West Bengal, and the Assistant Collector of Customs, Krishnagar Customs Division, to pay Rs. 1,66,170/- to the applicant as the market price of the goods, to be carried out promptly by 1st September 1992. This decision was based on the principle that the applicant should be compensated for the pecuniary loss resulting from the wrongful seizure and sale of the goods.