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TMI Blog1932 (4) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... ctual over-payments alleged by the appellants in their plaint. For these reasons their Lordships are of opinion that the appeal should be allowed; that the decree of 5th August, 1930, should be discharged, and that of 5th April, 1929 restored. - 46/1931 - - - Dated:- 21-4-1932 - Lords Blanesburgh, Tomlin and Sir Lancelot Sanderson JUDGMENT The appellants an American company, with headquarters in New York, are engaged in the manufacture of various grades of oil used for the lubrication of machinery. One of their specialities is an oil known as mobil oil specially manufactured for the lubricating of motor cars. Large quantities of mobil oil are imported into India and are sold by the appellants to retailers in one gallon tins. No question, however, is in these proceedings raised as to any oils so imported and sold. They were the subject of another suit to be referred to later. This case is concerned only with the import duties on the appellants machinery lubricating oil, including incidentally mobil oil in drums or barrels, which are imported into India through the Port of Bombay and are thereafter sold by the appellants direct to consumers. The dispute is as to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inable and that accordingly its real value must, for the purpose of duty, be determined in accordance with Section 30(b) or the Act involving a result relatively favourable to themselves. 3. Before 1923 these oils of the appellants had always been assessed at Bombay on the principle so contended for by them. In 1923, however the Customs authorities claimed, as their right under the Act, to assess the oils on the basis of their wholesale cash price, and in due course the action out of which this appeal arises was brought by the appellants to test the validity of that claim. In the proceedings the appellants complaint has been that on this new and erroneous principle they have been charged with and have been compelled to pay duty in excess of what was lawful. Their claim has been to recover the excess so paid. At the trial the appellants view prevailed with Blackwell J. who sitting as a Judge of first instance in the High Court of Judicature at Bombay, gave judgment for the appellants by a decree of 5th April, 1929. His decree however was, on 5th August, 1930, reversed on appeal by the same High Court, when then dismissed the action. By their present appeal the appellants seek ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hasers outside America was scarcely borne out in evidence, and is not directly pronounced upon by the learned Judge. It may be inferred that he was not satisfied on this point. But the question need not now detain their Lordships, although it will be again referred to. lt has not remained a decisive factor in the decision of the appeal. 6. The oil of the appellants is imported in barrels, drums and cases : the bulk of it in 42 gallon barrels and drums : only a small quantity in cases of two four-gallon tins. In their bills of entry for Bombay the oils is invariably valued by the appellants at its invoice price (arrived at as already stated), plus freight, insurance and landing charges. This was the basis of value accepted by the Customs up to March, 1923. It was for the restoration of this basis and of their assessment on that footing, that the appellants contended in the action. Upon importation all the oils are transferred to the appellants warehouses in Bombay. Large stocks are necessary, as their sales from Bombay alone average many million gallons a year. All contracts for sale are made with reference to stocks, and all deliveries are made from stocks replenished from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e price charged and received by them therefor, is, within the meaning of the words in Section 30 to give them again in their completeness a wholesale cash price less trade discount for which goods of the like kind and quality are sold or are capable of being sold at the time and place of importation. The learned trial Judge held that it was not. In his view the word wholesale used as it in connection with the words trade discount and cash price indicates a sale to persons in the trade for resale and not a sale to a consumer direct : nor, as he thought do the words cash price cover the appellants sales which are credit sales. 10. The High Court on appeal, took a different view of the Act. The learned Chief Justice of Bombay, who gave the leading judgment, discussing the words of the section separately, held that the preferable meaning to be attached to the term wholesale price as therein found was that of a price paid on a sale of substantial quantity of goods rather than of a price in contrast with a retail price; and when regard was had to the enormous quantities of oil represented by the appellants sales, and the substantial amount involved in even the smallest o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in its every aspect and free in particular from any loading for any post importation charges incurred in relation to the goods. The price is to be a price for goods, as they are both at the time and place of importation. It is to be a cash price that is to say, a price free from any augmentation for credit or other advantage allowed to a buyer it is to be a net price, that is to say, it is a price less trade discount . And this last expression, supplemented by these other indications confirms in their Lordships view the conclusion that the words wholesale price are used in the section in contradistinction to a `retail price and that only on the ground that such is a well recognized meaning of the words but because their association with the words trade discount indicates that sales to the trade are those in contemplation, and also because only by attaching that meaning to the word is the wholesale price relieved of the loading representing post importation expenses, which as a matter of business, must always be charged to the consumer, and which in the other words of the section already alluded to are so carefully eliminated. If the question of costruction had to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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