JOHNY BROTHERS Vs. ASSISTANT COLLECTOR OF CUTOMS

JUDGEMENT

(1.) THIS writ petition is to quash Ext.P -20 notice issued to the petitioner firm by the Assistant Collector of Customs.By the said notice the petitioner was called upon to show cause why the goods sought to be exported by them should not be confiscated under section 113( d )of the Customs Act,1962,read with section 23 -A of the Foreign Exchange Regulation Act,1947 and section 114(1)of the Customs Act,1962.After the admission of this writ petition on 14th November 1972,by an interim order passed on 17th November,1972 after hearing counsel,the petitioner was directed to deposit Rs.10,000 in this court as security against the liability,if any,which may ultimately attach to the petitioner in respect of the proceedings taken against him.On producing evidence of such deposit before the respondents,the respondents were directed to permit the petitioner to export the goods subject to acceptance of the bond that the petitioner had already furnished.I have been informed that in pursuance of this order the export of the goods has already been effected.The legality of Ext.P -20 notice would now remain for consideration in regard to the refund of the deposit of Rs.10,000 now lying in this court.

(2.) THE petitioner is an exporter of rosewood.He had purchased under Ext.P -1 9769 kilograms of a parti­cular variety of rosewood for export.The variety pur­chased was Pueraria Javanica ;.The purchase was,as seen from Ext.P -1,at Rs.3.30 per kilogram.After the purchase,the petitioner invited offers for the sale of the goods(vide Exts.P -1 to P -5 ).Ext.P -6 dated 22nd September 1972 is one of the replies to these notices asking for samples of Pueraria Javanica by second class Air­mail.The price quoted was $ 2,150 per ton c.i.f.Singapore.This was replied to by Ext.P -7 by the petitioner offering $ 2,300 per ton.Exts.P -10,P -11,P -13,and P -14 all repre­sent offers and counter -offers that passed between the vari­ous intending purchasers and the petitioner.Ext.P -13 was accepted by Ext.P -14 agreeing to purchase the goods at $ 2,250 per ton.Ext.P -15(no date is seen in that document)is the confirmatory letter which confirms the purchase for the said price.In pursuance of this,it is the petitioner 's case that the necessary shipping bills were made out by their agents and submitted for shipment of the goods on 11th October 1972.In paragraph 10 of the petition the petitioner has alleged that the bills were returned with the endorsement that the price is very low,substantiate ;.The petitioner re -submitted the papers with his reply dated 11th October 1972.But they were again returned on 13th October,1972 with the endorsement that there are current shipments at higher prices ;.The petitioner then met the Assistant Collector of Customs on 14th October 1972 and personally explained the position.The goods were transported to the Port Warehouse in Willingdon Island and kept ready for export by a ship sailing on,12th November 1972.The Customs authorities checked the quality and quantity of the goods.Thereafter the petitioner was served with Ext.P -20 show cause notice against confiscation of the goods.The relevant portion of Ext.P -20 is as follows: -

(3.) SECTION 11(1)of the Customs Act,1962 may be read: