RAINBOW COLOUR Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) The writ petition is taken up with the consent of both parties. The petitioner purchased on high seas basis 5000 rolls of Konica Colour Negative Film for exporting the same. Even before the arrival of the goods, the foreign buyer had opened necessary export letter of credit and the same was also filed along with the bills of entry bearing Nos. 24362, 24363, 24364, 24365, 24366, 24368, 24369, 24372, 24377 and 24394 dated 16.7.1992. The petitioner wanted to warehouse the goods. The customs authorities also made an endorsement on the bills of entry that they are intended for re export as per public notice 18-ITC (PH) 9-CUS-(N.T) No. 10/92 dated 11.2.1992. (sic)

(2.) But, however the authority insisted upon the petitioner paying 50% of the duty assessed on the goods as per Section 59-A of the Customs Act. The petitioner has filed this writ petition challenging the same contending that his goods fall under Section 61(1)(a) of the Act and not under Section 61(1)(b) of the Act which alone are covered by under Section 59-A of the Act (sic).

(3.) The contention of the petitioner is well founded for these reasons. Section 61(1)(a) of the Act refers to several types of goods. Clause (5)[(v)?] of Sub-section 1(a) of [of Section 61] the Act refers to goods which the Central Government may, if it is satisfied that it is necessary or expedient so to do, by notification in the Official Gazette, specify for the purpose of this clause. The Central Government has issued notification 10 of 1992 -- Cus (NT) dated 17.2.1992. Under that notification, goods meant for re-export are also stated to be goods for purposes of Sub-section (1)(a) of Section 61 of the Act. In this case, there can be no doubt whatever that the goods in question are meant for re-export as the petitioner has already filed the relevant letter of credit with the authorities opened by foreign buyer. The authorities have also made the entry on the bills of entry that the goods are meant for re-export within the meaning of the notification.