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TMI Blog1982 (2) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it is the sea freight for like goods that should be taken as freight in all circumstances for articles imported by air provided that such sea freight at the material time is ascertainable. 2. Shri Nankani, Advocate, who appeared on behalf of the petitioners in the personal hearing on 21-7-1981 raised some important points which are as follows :- (1) The power to assess value for the purpose of levying duty is governed by Section 14 of the Customs Act, 1962. The said Section 14 does not talk of normal value but the value at which such or like goods are ordinarily sold or offered for sale for delivery at the time and place of importation in the course of international trade. The Select Committee of Parliament in the notes on clauses w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The place of importation has to be taken as Bombay, Calcutta etc. and not the actual point of landing such as airport or the dock. In support of the above contention the petitioners have produced copies of two judgments — one passed by the Bombay High Court and the other one passed by the Calcutta High Court. In the former case vide AIR 1936 Bombay 356 it was observed that the phrase "place of importation" cannot mean the exact spot of land on which the goods are landed, whether on the wharf or on the shore. It must cover a wider area — meaning the place whether 130mbay, Madras, Karachi or elsewhere as the case may be at which the goods are imported. (3) Similarly in regard to time of importation it has been submitted by the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion that there is a distinction between the words "normally" and "ordinarily". According to the petitioners, the word "ordinarily" has been inserted in Section 14 so as to suggest that ordinary means of transport should be taken into account in preference to the extraordinary ones, like importation of goods by air. Government observe that the valuation norm as set out by Section 14 of the Customs Act, 1962 is based on the positive concept of valuation which has its origin in ECAFE concept of valuation. Under positive concept, the dutiable value of imported goods is their actual sale price, if they are sold in specified conditions. In case the imported goods are not so sold, the dutiable value is the actual sale price of the like goods adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Customs Act in preference to the word "ordinarily". It has, however, been shown above that even in terms of positive concept of valuation, the actual sale price which in the present cases included air freight would be accepted as value for assessment purposes. 5. Let us now examine the expression "for delivery at the time and place of importation". The petitioners have relied on some judicial pronouncements to say that the word "time" does not refer to the precise moment of time at which the goods are imported, that is, unloaded from the ship. There must be a reasonable time in which the sale can take place. There is no objection in accepting the view that the expression "time" would suggest or imply 'time' within reasonable proximity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Customs Act, 1962. Now the question is what is meant by "place of importation" within the meaning of Section 14 of the Customs Act. The Customs Act does not define the aforesaid expression. To find out a reasonable explanation of meaning for the above expression, we should refer to the international practice and various international conventions. 6. In the E.E.C. Regulation, the expression used is "the place of introduction" instead of "the place of importation". As these two expressions do have similar connotation, it would be relevant for all purposes to find out the meaning of the expression "the place of introduction" in the context of EEC Regulation. 7. In the E.E.C. Regulation, the place of introduction into the customs territo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en, the place of introduction is the port or airport to which the goods are consigned or at which they are discharged from the ship or the aircraft for on-carriage to their destination. As a matter of fact, almost all the European and American countries who have subscribed to Brussels concept of valuation take the "place of introduction" as the point of landing only, such as airport or the dock. In view of the above international practice that can be taken as well-established by now, the place of importation for the purpose of Section 14 can be taken as the point of landing, viz., airport or the dock. As such, in terms of Section 14, the test for valuation purposes should be what is the selling price for the goods for delivery at the time a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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