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TMI Blog1983 (5) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... ing some of the Directors common, and both of them are having their registered office in Calcutta, and as their letter-heads in the files reveal, in the same premises. Two separate Bills of Entries were submitted on their behalf by M/s. G.D. Traders, Custom House Clearing Agents on 29-2-1980; being Bill of Entry No. I-1517, dated 29-2-1980 in respect to M/s. Automatic Machine Co. (India) Private Ltd. and Bill of Entry No. I-1518, dated 29-2-1980 in respect to the other company, namely M/s. Bell Punch (India) Private Ltd., both bearing the address 2, Chowringhee Approach, Calcutta . 3. The subject matter of import, in each case was three automatic machines, described as Speed Race , Super Block Circus and Acrobat . Whereas Bill of Entry No. I-1517 covered two pieces of Speed Race and one piece of Acrobat , the other Bill of Entry related to one piece of Speed Race , one piece of Super Block and one piece of Circus . The Invoice value of each set of the three machines was declared to be ₹ 1,950/-. 4. The Assistant Collector, however, found, on the basis of the Report of Appraisers, that the adequate value of each set of three machines ought to be ₹ 9,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m being the nearest in time to the date of import, it was a clear case, in his opinion, where the goods had been allowed to be cleared at a grossly undervalued price. He also did not find any merit in the plea that he could not look to any evidence in the nature of price list, which had come into his possession through some other private party, as in his view, since nothing was being done behind the back of the party, and that this price list has been enclosed with the show cause notice, he felt free to rely upon the same. He also found the contention that the price list relating to new products, could not be applied to the subject machines which they pleaded to be old and used ones, unsubstantiated as there was no declaration at the time of import nor any endorsement on the Bill of Entry made by the Customs Officers that they were used or second-hand machines nor any other evidence produced to that effect. It was also noted that there was no such indication in the application made by them to the Joint Chief Controller of Imports Exports for issue of CCP. He thus felt convinced that this plea was a mere afterthought. He also observed in passing that in the background in which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Government by means of a Revision Petition filed under Section 131 of the Customs Act, by the two companies separately but on identical pleas. Both the Revision Petitions have been transferred to the Tribunal by virtue of provisions of Section 131B(2) of the Act, to be treated as appeals, and they have been accordingly taken as such for disposal. 9. The order of the Collector is assailed on the ground that the same was based on material which has been collected privately in the form of a price list of the manufacturers through one Mr. Harihar of Madras, and that the Collector erred in ignoring the appellant companies submissions that the said price list was inadmissible and that otherwise also, the import having taken place on 29-2-1980, the price list dated 24-4-1980 was not relevant piece of evidence on the question of price. They also pleaded that the machines were simply games for children and had been wrongly described as gambling machines and that the order demanding additional duty as well as imposing penalty was arbitrary, unjustified and illegal. They further contended that the value as determined by the Assistant Collector was based on enquiries and mark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 843. In one case, the ambit of the Madras Sales Tax was in focus, and in the other that of Bombay, but the principle involved was the same and the learned Counsel quoted these authorities in support of his argument that revisional Authority could not go outside the records while undertaking suo motu review of an order of a lower or subordinate authority. 13. The learned Departmental Representative countered these arguments by pointing out that the power that is vested in the Collector by virtue of provision of Section 130(2) of the Act, not only enables him to examine the `legality or `propriety of a decision or an order passed by a subordinate officer but also the correctness thereof and then pass such orders, as he thinks fit. He emphatically urged that the powers of such wide amplitude, particularly in respect to rectification of errors were not appropriately exercisable by reference to records alone and that some errors may not be manifest from the record itself, and that this power of examining the correctness of an order , inherently implies the authority to take into consideration material which may be outside the record, if this power were to be real. 14. We have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case, we find that the price list which the learned Collector took into account was annexed to the show cause notice itself. The appellants, therefore, cannot even urge that they have been taken by surprise or deprived of the opportunity to rebut or controvert the evidence which formed the basis for the order of the Collector. There is thus no violation of principles of natural justice, nor any prejudice caused to the appellants, by Collector s reliance on this price list. The Collector has in a very detailed and well-reasoned order set out the facts which led him to undertake the review and he has given full opportunity to the party to show otherwise, which they failed to do. There is no plea that they have been deprived of the opportunity to place correct price list before the Collector nor do they show even not as to what the price list during the month of import could have been, or was different. The Collector s observations that the trend of the subsequent price list shows that there has been steady decline in the price has also not been refuted. The plea that the machines were used and old one and hence the price list of new products, could not be applicable has also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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