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TMI Blog1992 (12) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... nd) are liable to excise duty prevalent as on February 20, 1989 and to release the goods on payment thereof or in the alternative to declare Section 15(l)(a) ultra vires of Arts. 14, 19(l)(g), 21, 265 and 300A of the Constitution. The facts are that the petitioner placed in January-February, 1988 an order with the Indian agent of the foreign supplier M/s. Impex Matel Lucka, Warszawa, to supply ball bearings and irrevocable letters of credit were opened on July 13, 1988 for Rs. 13,07,830/-. The foreign supplier shipped the goods in M/s. Stefan Czarniecki under bill of landing No. 9 and invoice No. 06/222/71154 dated December 31, 1988. The ship arrived on February 20, 1988 at Madras port and was ready to discharge the cargo. It delivered the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received by the appraising section on February 28, 1989, that would be at least the proper date for determination of the rate of levy. We find no force in the contention. Section 15 of the Customs Act, 1962 for short 'the Act' prescribes the rate of duty and tariff valuation on imported goods thus: "15(1) The rate of duty and tariff valuation, if any, applicable to any imported goods, shall be the rate and valuation in force, - (a) in the case of goods entered for home consumption under Section 46, on the date on which a bill of entry in respect of such goods is presented under that section; (b) in the case of goods cleared from a warehouse under Section 68, on the date on which the goods are actually removed from the warehouse; (c) in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r officer may, pending the production of such information, permit him, previous to the entry thereof: (a) to examine the goods in the presence of an officer of customs, or (b) to deposit the goods in a public warehouse appointed under Section 57 without warehousing the same. (3) A bill of entry under sub-section (1) may be presented at any time after the delivery of the import manifest or import report as the case may be. (5) If the proper officer is satisfied that the interests of revenue are not prejudicially affected and that there was no fraudulent intention, he may permit substitution of a bill of entry for home consumption for a bill of entry for warehousing or vice versa." Sub-sections (2) and (4) are omitted as being irrelevant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry inward on delivery of import manifest and the date of arrival of the vessel into port admittedly are on March 2, 1989 and the Master of the vessel made a declaration in this behalf that they would discharge the cargo on March 2, 1989. Therefore, the relevant date under Section 15(l)(a) is the date on which entry inwards after delivery of import manifest was granted to discharge the cargo for the purpose of the levy of the customs duty and rate of tariff. The contention, therefore that the ship entered Indian territorial waters on February 20, 1989 and was ready to discharge the cargo is not relevant for the purpose of Section 15(1) read with Sections 46 and 31 of the Act. The prior entries regarding presentation of the bill of entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5) of Section 46 this court could give a proper direction to slash down the rate of duty or may direct to levy the duty prevailing as on the date of the release treating the goods under Section 15(l)(b) of the Act read with Section 68 of the Act. We have given our due consideration but find it difficult to accede to the contention. It would be clear that the rate of duty and tariff valuation on the imported goods covered under Section 15( l)(a) is the date on which the bill of entry is presented under Section 46 read with Section 31 while the rate of duty and tariff valuation in respect of the goods covered under Section 15(l)(b) is the date on which the goods are actually removed from the warehouse under Section 68. The manifest intention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rim directions of the court are taken to be substitute for the statutory operation of the relevant provisions, the interest of the revenue would be prejudicially affected and the fraudulent conduct and acts done in furtherance thereof would get legitimacy to avoid payment of duty and tariff prevailing as on either dates on which the bill of entry was presented or the goods are actually removed from the warehouse. It would be easy for an importer to have the goods imported, get an order from the court to keep them in private warehousing till either the rate of tariff is reduced or the price of the goods are substantially increased by creating artificial scarcity in the market which would jeopardise the economy of the country. Accordingly we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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