BHARAT GOYAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The prayer in the above writ petition is as follows:

(2.) The petitioners purchased an advance licence on 20.7.1992 and imported 8000 kgs of rubber bands from Taiyo Nokusai Boeki, Osaka, Japan. The bill of entry bearing No. 34897 dated 13.10.1992 was filed. The price declared therein was JY 110 per kg. However, the respondents have refused to adopt this value and insisted on provisional assessment of the goods at the unit price of US $ 2.40 per kg and since the goods were urgently required it seems that the petitioners had to agree to their course of action and clear the goods. The licence was accordingly debited as per the price fixed by the customs. Subsequent to that the petitioners placed an order on M/S. Sun Fashions Corporation, Osaka, Japan, who are the Sole Export Selling Agents for Nishiban Mobilon Polyurethane Bands for supply of 54,000 kgs of rubber bands at a price of JY 120 per kg. The first-shipment of 6400 kgs was to take place during December, 1992 and the balance in seven equal shipments of 6800 kgs per month. It may be stated here that Advance Licences are issued against exports under the duty from scheme [sic] in order to encourage exports. The petitioners imported 6400 kgs of rubber bands from M/s. Sun Fashions Corporation and filed a bill of entry No. 1350 dated 12.1.1993. The invoice value was JY 7,68,000 at the unit rate of JY 120 per kg which works out to Rs. 1,94,017/-. The respondents wanted to provisionally assess the goods in US $ 2.40 per kg by following the method adopted in the previous bill of entry. By that time the petitioners had in their possession several bills of entry under which similar goods were cleared at even lower prices of JY 110 per kg. both at Madras Cochin Ports. It is alleged in the affidavit filed in support of the above writ petition that the Special Investigating Branch of the Customs investigated the value of the goods and found that instead of Rs. 24/- per kg as declared by the petitioners, the value of Rs. 30/- per kg should be adopted. However, the third respondent passed an order on 11.2.1993 adopting the same value of US $ 2.40 per kg in respect of the goods imported in respect of the bill of entry No. 1350 dated 12.1.1993. The only reason given was that identical goods covered under the bill of entry was provisionally assessed pending investigation by the Appropriate Authority. Against the said order passed by the Customs Department, the petitioners filed a writ petition No. 3064 of 1993 and after hearing the learned Counsel appearing for both parties, this Court passed the following order:--

(3.) In the meanwhile it seems a further consignment of goods are stated to have been shipped, of which one is arriving shortly, that if the Department is going to once again take the arbitrary stand that the goods should be valued at US $ 2.40 per kg. then the petitioners will be put to unnecessary hardship, that though the respondents have no power of jurisdiction to provisionally assess the goods since Section 18 of the Customs Act, 1962 does not apply, the respondents are resorting to this arbitrary and capricious method, that when the Collector himself has accepted the price is Rs. 30/- per kg, there is no scope for the Department arguing that the matter is under investigation and the price has got to be increased further and that in view of the problems that are likely to arise due to the arbitrary stand of the Department, the petitioners have approached this Court.