9911796707
TMI Blog1963 (10) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner among them, to say that they had on their hands a stock of parts of watches of Indian models which had become dead stock as there was a ban on the import of watches as a whole. Since these parts were of those specially manufactured for Indian conditions and could not be sold in other markets, the manufacturers were prepared to reduce the prices for these job lots and requested the petitioner to utilise its import licences for importing these spare parts. In pursuance of this understanding, the petitioner claimed that it placed an order for the import of parts of watches upto the value of the licences. When the goods arrived by post-parcel in November, 1959, the Assistant Collector of Customs, Postal Appraising Department, purported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... toms erred in taking into consideration factors which were wholly irrelevant to the determination of the value. It is also claimed that the authorities purported to rely upon evidentiary material of which the petitioner was given no notice whatsoever and had no opportunity of meeting that evidence. 2.In the counter-affidavit of the respondent, it is stated, that the import contravened the provisions of the Import Trade Control Order inasmuch as the appraised value of the goods was found to be much higher than the invoice value and the value importable under the licence. It is pointed out that the circular issued by the manufacturers was incomplete in details inasmuch as the price stated therein did not specify the quantities for which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of a similar consignment imported by Messrs. P. C. Patel and Co. of Bombay, no objection was raised with regard to the value. The Assistant Collector of Customs, by his order dated 20th April, 1960 held that the assessed value of Rs 1470 /- was the correct value and that the value shown in the invoice represented an under-valuation. He stated in his order that the circular did not give any particulars of the quantities for which the prices were quoted and that it could not be relied upon. He stated : "The appraised value of Rs 21/- per piece, estimated by this office, which is supported by invoices in respect of identical goods imported by others, represents the correct value of the goods. The invoice value which is found to be low, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the licence in favour of the petitioner, which was for Rs. 500/-, could not validly cover the import. He directed confiscation of the goods with opportunity to redeem them on payment of a fine of Rs. 1200/-. This matter came to this Court by way of a writ petition. Ramachandra Iyer, J. as he then was, found that in so far as the invoice in the name of the petitioner was concerned, it was within the limit of Rs. 500/- though no doubt the invoice in favour of the earlier importer was for a much larger sum in respect of the same consignment. He observed : "The licence specifically states that the limiting factor for the purpose of clearance through customs is the value of the goods and that value is stated as the approximate c.i.f. val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the seller to the petitioner. There may be cases where the invoice price was only a camouflage to hide the real price, in such a case, the Import Control authorities will have undoubted jurisdiction to ascertain what was the real price; or there may be cases in which a portion of the price had already been given to the seller and the balance alone is entered in the invoice simply with a view to obtain entry for the goods into this country. In these cases, it will be competent for the authorities to ascertain the real price of the goods for the purpose of entry without offending the provisions of Import Control Order......". 6.It was argued on behalf of the petitioner that this decision completely meets the contentions of the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice. As pointed out by the petitioner, in the case of some costlier varieties of watches, similar spare parts could be sold at a higher price. If the evidence upon which the Department purported to rely can be accepted at its face value, equally the evidence which the petitioner sought to place before the Department of similar imports at Bombay could have been accepted. It is true that the fact that the Bombay Customs Collector permitted the import in a similar case may not conclude the issue in so far as this petitioner is concerned and may not again prevent the Collector of Customs, Madras, from enforcing the provisions of the Act according to his understanding of these provisions. But the point to note is that when the Department purport ..... X X X X Extracts X X X X X X X X Extracts X X X X
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