RUCHI SOYA INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) These petitions arise in similar factual background. They have been heard together and are being disposed of by this common judgment. For the purpose of this judgment, we may notice pleadings from Special Civil Application No.9306/2002.

(2.) Petitioner No.1 is a company registered under the Companies Act (hereinafter referred to as 'the company'). Petitioner No.2 is its authorised signatory. The company is engaged in the business of import of various goods particularly various types of edible oils. The company purchased for import 10,000 metric tonnes of 'crude degummed oil of edible grade' (hereinafter to be referred to as 'the goods') for a price agreed between the company and the seller situated in Singapore. The agreed CIF value of the goods was USD 370 per metric tonne.

(3.) Part of the goods arrived at Jamnagar on 2-9-2002. The company thereupon filed three bills of entries No.371, 372 and 373 all of 2-9-2002 before the customs authorities at Jamnagar for a total quantity of 1250 metric tonnes for home consumption. The company declared the CIF value of the goods on the basis of the contracted price. As per the company, assessment of customs duty and additional duty would be based on the value so declared in the bills of entries. The respondent authorities, however, insisted on collection of duty on the basis of the tariff value fixed by the respondents under a notification dated 2-9-2002 (hereinafter to be referred to as 'the notification of 2002') issued in exercise of powers under section 14(2) of the Customs Act, 1962 ('the Act', for short).