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TMI Blog1985 (12) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... ated the facts of the case are that the appellants imported one spectrometer complete with spares and ancilliaries under B/E No. I-982 dated 25-5-1977 and cleared the same for home consumption on 20-6-1977 after payment of customs duty amounting to Rs. 1,92,221.19P. After the goods had been removed to the appellants premises, the same were got surveyed by the insurance company in the presence of the local agent of the foreign supplier. The insurance survey revealed that the equipment had been extensively damaged. It would appear that on the advice of the manufacturers local representative, the appellants exported the goods under S/Bill No. A-1537, dated 28-1-1978 for re-importation after necessary repairs. It is pertinent to note here tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the drawback was claimed had been severely damaged prior to its re-export, it had no other value except scrap value or salvage value. For settlement of this value, the Assistant. Collector placed reliance on figure of 2,148.00 which the foreign suppliers had worked out after detailed examination of the damaged unit. Making this figure as the basis, the Assistant Collector after discussion of the case in the adjudication order, held that since the market value of the article at the time of exportation was much less than the amount of drawback claimed, the same could not be granted under Section 74 of the Act. He, accordingly, rejected the appellants claim. 4. Aggrieved with the Assistant Collector s decision, the appellants took up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said article namely, 2,148.00, as intimated by the foreign suppliers. The Appellate Collector, it was contended, had worked out his own formula according to which the market price of the damaged goods came to only Rs. 9,169.10P. Shri Roy contended that there was no warrant in law in fixing the market value of the article ....... in which the Appellate Collector had worked it out. He submitted that this figure was even less than the figure adopted by the Assistant Collector which was fixed at Rs.52,800.06P (scrap value or salvage value). The main thrust of the learned Counsel s argument was that the correct mode of working out the market price of the damaged goods was as stated by the appellants in the revision application. According t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods was much higher than the amount of their claim. The learned Counsel prayed that the orders of the lower authorities being contrary to law deserved to be set aside and the appellants claim deserved to be allowed. 6. Shri Ajwani, the learned SDR argued the case for the Department. He submitted that, according to the appellants own version they were aware of the fact that the packages containing the goods had landed in damaged condition. It was, therefore, incumbent on the appellants to have the goods surveyed in the presence of a proper officer of Customs to ascertain the damaged value of the goods. After that it was open to the appellants to claim the benefit of Section 22 of the Act. which deals with abatement of duty on damaged or d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adopting the salvage or scrap value of the same as the market price. The various formulae given by the appellants to work out the value of the damaged goods were based on hypothetical considerations which could not be fitted into the scheme of the Act. 7. As regards the appellants contention that offers had been received by the insurance company or that a firm of surveyors and assessors had fixed the value of the damaged goods as Rs. 4 lakhs, this evidence if at all it could be considered as evidence, was placed before the lower authorities long after the damaged goods had been exported. The contention of the appellants on this point, therefore, was worthy of rejection. The appellants had further contended that the insurance value of 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. It was open to them to apply to the proper officer for services of an escort officer to their air-conditioned room and have the survey carried out in his presence. On the other hand, the appellants took the clearance of the goods from the Customs without any reservation and, therefore, we see force in the contention of the learned SDR that the mischief of Section 149 squarely applies to their case. We also observe that the appellants did not export the goods under cover of a drawback shipping bill but exported the same with the intention of re-importing the damaged goods as provided in Section 20 of the Act. The rigour and nature of examination of the goods can be quite different when the same are exported under claims for drawback and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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