COLLECTOR OF CUSTOMS MADRAS Vs. LALA GOPIKISSEN GOKULDASS

JUDGEMENT

(1.) This is an appeal against the Judgment of Panchapakesa Aiyar J. allowing in part an application filed under Section 45 Specific Belief Act, and issuing a Writ in the nature of mandamus directing the Collector of Customs, Madras, to release 12 Diesel Engines belonging to the respondent (applicant in the application) and imported by him on the respondent's paying the entire customs duty payable on the value of the engines plus 12 1/2 per cent of the entire value of the goods and setting aside the order of confiscation which has been passed by the Customs Authorities in respect of these engines. The Collector of Customs his filed this appeal while, the respondent who filed the application for the writ of mandamus has filed a memo of cross-objection fn which he has prayed that the learned Judge should not have imposed a fine of 12 1/2 per cent on the value of the goods which the learned Judge made a condition for their clearance.

(2.) The facts giving rise to these proceedings are briefly these: The applicant for the writ of mandamus is a firm of importers by name Lala Oopikissen Gokul Dass. A public, notice of the Government of India, Ministry of Commerce, dated 11-91950, was issued inviting the attention of the importers to the fact that the Government had decided to allow the import of Diesel engines falling under serial No. 30 from all sources of import on the basis set out in the said notice during the period July to December 1959. This notification after classifying established importers into two categories, went on to state la para 3:

(3.) Messrs. Turner Hoare and Co. Ltd, who were one of main Importers of Diesel Engines into this country and with whom the respondent-firm had dealings approached Mr. Phansi, Principal Appraiser, Machinery Department Customs House, Bombay, and made an enquiry as to whether National Gas & Oil Engine Co.'s Horizontal engines of OB or OBSE type rated at 20/22 B. H. P. fell within paragraph 4 of the Ministry of Commerce Circular referred to above. The firm was orally assured that it was so and desiring to have a confirmation in writing despatched a letter dated 19-10-1950 to the Assistant Collector of Customs setting out this information. The firm also stated that these engines of the National Gas & Oil Engine Co. and hitherto been imported as 20/22 B. H. P. and no alterations in design had been made since the hew import regulations. They further requested a confirmation in writing to enable them to cable their indents to the makers. A formal reply dated 15-11-1950 was received by this firm in which it was stated that the oil engines of the type OB or OBSE 20/22 H. P. could be imported against the licence for Diesel engines above 20 H. P. Relying upon the oral assurance to Messrs. Turner Hoare and Co, of which they were informed the respondent firm applied for the grant of two import licences authorising them to import Diesel engines above 20 H. P. The licences were granted by orders dated 26-10-1950 and 11-11-1950 by the Office of the Deputy Chief Controller of Imports, Calcutta, the first licence enabling goods of the value of Rs. 2,00,000, to be imported while the second permitted importation of goods of the value of Rs. 6,00,000. The description of the goods was stated in both the licences to be "engines above 20 H. P."