GLOBAL INDUSTRIES Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THESE four appeals arise out of a common judgment dated 22nd November, 2010 in W.P.(C) No. 33810 of 2010 and connected cases. All the appellants are proprietary concerns. They have imported 'Betel nuts' from Indonesia. Though the appellants have presented the Bill of Entries for home consumption, the goods are not yet cleared for home consumption as the assessment is not yet complete, since there is dispute regarding valuation of the goods imported.

(2.) THE brief history and background of the case is as follows: By notification dated 4th June, 2008 issued by the Director General of Foreign Trade purporting to be in exercise of the power under Foreign Trade (Development & Regulation Act), 1992 read with paragraph 2.1 of Foreign Trade Policy 2004-09, it was notified that 'Betel nuts' (whole) could be imported freely into India provided the cif value of the commodity is Rs.35/- per kilogram and above. In other words, if the value of the imported 'Betel nuts' is declared to be Rs.35 per kilogram and above, the requirement of obtaining any licence under the relevant law is dispensed with. THE legality of the said notification, in so far as it prescribes the minimum value of the imported item, came to be challenged before this Court as well as before the other High Courts of this country. By judgment dated 02.11.2010, the said notification was declared as illegal by a learned Judge of this Court and were informed that a similar view was taken by the Madras High court in S.Mira Commodities Pvt. Ltd vs. Union of India (2009 (235) ELT 423). When the consignments, which are in question in these four appeals arrived and sought to be cleared by presenting the bills of entry for home consumption, it was endorsed on the bills by the authorities of the Customs that the value declared by the importers appeared to be very low compared to the contemporaneous imports made in other ports at the relevant point of time and therefore directed the importers to furnish further information including the documents in support of their claim of value of the goods. It was further indicated that failing production of such materials, value of imported materials would be re-fixed under Rule 5 of the Customs Valuation (Determination of Value of imported Goods) Rules 2007.

(3.) UNDER Section 17 of the Act, the proper officer making the assessment may call upon the importer to produce any document or information, which in the opinion of the officer is relevant for making the assessment. UNDER Section 18, provisional assessment is contemplated in various situations. The relevant in the context of the present appeals is the situation contemplated under 18(1)(c), which stipulates that where the importer has produced all documents and furnished full information believed by him to be necessary and sufficient for the assessment of the duty, but the proper officer deems it necessary to make further enquiry for assessing the duty, the proper officer is authorised to make provisional assessment on condition that the importer furnishes such security as may be specified by the proper officer for securing payment of duty leviable on the imported goods/material. Statutory rules are framed regarding the method and manner in which valuation of the goods imported are to be made, known as Customs Valuation (Determination of Value of imported Goods) Rules, 2007. It may not be necessary for us to go into further details of the provisions of the Act or rules for the purpose of disposing of the present Writ Appeals .